Cohen Milstein Sellers & Toll PLLC Announces the Investigation of Avid Technology, Inc.

  Cohen Milstein Sellers & Toll PLLC Announces the Investigation of Avid
  Technology, Inc.

Business Wire

WASHINGTON -- April 12, 2013

Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine
whether Avid Technology, Inc. (“Avid” or the “Company”) and certain of its
officers and directors made false and misleading statements and/or omissions
in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of
1934.

A class action lawsuit was filed in the U.S. District Court for the District
of Massachusetts by another law firm on behalf of purchasers of the common
stock of Avid (NASDAQ: AVID) between April 22, 2011 and February 22, 2013,
inclusive (the “Class Period”).

The complaint alleges that Avid and certain of its officers and directors
(“Defendants”) misrepresented and/or failed to disclose that: (1) Avid
incorrectly accounted for its Software Updates by failing to properly treat
them as post-contract customer support under GAAP; (2) Avid lacked adequate
internal and financial controls; and (3) as a result of the foregoing, Avid’s
statements were materially false and misleading at all relevant times.

On February 11, 2013, Avid announced that defendant Gary G. Greenfield had
“voluntarily resigned” his posts as Chairman, CEO and President but would
continue to serve as a director of the Company. The Company gave no
explanation for Greenfield’s abrupt resignation.

On Monday, February 25, 2013, Avid announced that it was postponing the
release of its fourth quarter results because it needed additional time “to
evaluate its current and historical accounting treatment related to bug fixes,
upgrades and enhancements to certain products which the Company has provided
to certain customers,” adding that “[t]he need to evaluate the accounting
treatment arose during the Company’s normal review of its financial results
for the fourth quarter and full year 2012.” Avid stated that it was unable to
estimate when the evaluation would be completed. The price of Avid shares fell
from $7.66 to $6.98 on February 25.

On March 19, Avid filed a form NT10-K in which it provided the following
additional information regarding its review:

The revenue recognition related to [certain types of post-contract customer
support or “PCS”] customer arrangements may change whereby all or a portion of
the revenue would be recognized ratably over the estimated PCS service period…

The Company is currently unable to estimate the time needed to complete its
evaluation, predict the materiality of any adjustments that could be required,
and the impact, if any, on prior periods…[T]he Company is unable to file its
annual report on Form 10-K for the year ended December 31, 2012 by the
prescribed due date and does not believe that it will be in a position to file
its Form 10-K for the fiscal year ended December 31, 2012 by April 2, 2013…

Two days later, Avid reported that it had received a delisting notice from
NASDAQ due to its failure to timely file its 2012 Form 10-K.

Cohen Milstein encourages all investors who purchased Avid common stock
between April 22, 2011 and February 22, 2013, or former employees with
information concerning this matter to contact the firm.

If you are an Avid shareholder and would like to discuss your right to recover
for your economic loss, you may, without any cost or obligation, call Cohen
Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202)
408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as
lead plaintiff, you must move the Court no later than May 24, 2013 to request
that the Court appoint you as lead plaintiff. A lead plaintiff is a
representative party acting on behalf of other class members in directing the
litigation. To be appointed lead plaintiff, the Court must decide that your
claim is typical of the claims of other class members, and that you will
adequately represent the class. Your share in any recovery will not be
enhanced or diminished by the decision whether or not to serve as a lead
plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers
& Toll PLLC or other attorneys to serve as your counsel in this action, or you
may do nothing and remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting
investor class actions and actions involving securities fraud. The firm has
offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach
Gardens, and is active in major litigation pending in federal and state courts
throughout the nation.

The firm’s reputation for excellence has repeatedly been recognized by courts
which have appointed the firm to lead positions in complex multi-district or
consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead
role in numerous important cases on behalf of defrauded investors, and has
been responsible for a number of outstanding recoveries which, in the
aggregate, total over a billion dollars. Prior results do not guarantee a
similar outcome. For more information visit www.cohenmilstein.com.

If you have any questions about this notice or the action, or with regard to
your rights, please contact either of the following:

Steven J. Toll, Esq.
Asha Williams
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; awilliams@cohenmilstein.com
Attorney Advertising

Contact:

Cohen Milstein Sellers & Toll PLLC
Steven J. Toll, Esq.
888-240-0775 or 202-408-4600
stoll@cohenmilstein.com
or
Asha Williams
888-240-0775 or 202-408-4600
awilliams@cohenmilstein.com
 
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