Gainey McKenna & Egleston Announces a Securities Fraud Class Action Lawsuit
Has Been Filed Against Avid Technology, Inc. -- AVID
NEW YORK, April 19, 2013 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston
announces that a class action lawsuit has been filed in the United States
District Court for the District of Massachusetts on behalf of all persons or
entities who purchased the common stock of Avid Technology, Inc. ("Avid" or
the "Company") (Nasdaq:AVID) between April 22, 2011 to February 22, 2013,
seeking remedies under the federal securities laws.
The Complaint alleges that throughout the Class Period Defendants issued false
and misleading statements and failed to disclose material adverse facts about
the Company's business, operations and prospects. Specifically, Defendants
failed to disclose that: (1) the Company incorrectly accounted for its
software updates by failing to properly treat the software updates as
post-contract customer support under U.S. Generally Accepted Accounting
Principles; (2) the Company lacked adequate internal and financial controls;
and (3) as a result of the foregoing, certain Company statements were
materially false and misleading.
On February 25, 2013, the Company announced that it was postponing the release
of its financial results for the fourth quarter of 2012 as it will need
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." On this news, Avid shares declined
$0.68 per share or nearly 9%, to close at $6.98 per share on February 25,
If you wish to serve as lead plaintiff, you must move the Court no later than
May 24, 2013. A lead plaintiff is a representative party acting on behalf of
other class members in directing the litigation. If you wish to join the
litigation, or to discuss your rights or interests regarding this class
action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of
Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at
firstname.lastname@example.org or email@example.com.
Attorney Advertising -- Prior results do not guarantee or predict a similar
outcome with respect to any future matter. Please visit our website at
http://www.gme-law.com for more information about the firm.
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