SOURCE: Izard Nobel LLP

September 08, 2010 17:00 ET

Izard Nobel LLP Announces Class Action Lawsuit Against TeleNav, Inc.

WEST HARTFORD, CT--(Marketwire - September 8, 2010) -  The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of California on behalf of purchasers of the common stock of TeleNav, Inc. ("TeleNav" or the "Company") (NASDAQ: TNAV) pursuant to the Registration Statement and Prospectus issued in connection with its May 13, 2010 initial public offering ("IPO").

The Complaint charges that TeleNav and certain of its officers, directors and underwriters violated federal securities laws. Specifically, the Registration Statement and Prospectus (collectively, "Registration Statement") failed to disclose the following: (i) TeleNav would soon be renegotiating its contract to provide Sprint Nextel Corporation ("Sprint"), its largest customer, with its Sprint Navigation application, which would result in lower revenues; (ii) the unwillingness of Sprint to continue with the same contract terms beyond December 31, 2010 would have negative implications for TeleNav's other wireless relationships; and (iii) adverse changes to the Sprint relationship would cause TeleNav's results to trend adversely compared to the trends included in the Registration Statement.

On July 29, 2010, TeleNav disclosed that it had started negotiations regarding contract roll-over with Sprint, and if successful, the contract roll-over would probably lead to an aggregate reduction in revenue from its largest customer. On this news, TeleNav's stock fell $3.47, to close at $5.44 per share on July 30, 2010.

If you are a member of the class, you may, no later than November 1, 2010, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/telenav/, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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