Robbins Geller Rudman & Dowd LLP Files Expanded Class Action Suit against
Avid Technology, Inc.
NEW YORK -- May 23, 2013
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/avid/) today announced that a class action has
been commenced on behalf of an institutional investor in the United States
District Court for the District of Massachusetts on behalf of purchasers of
Avid Technology, Inc. (“Avid”) (NASDAQ:AVID) common stock during the period
between January 29, 2010 and February 22, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than
May 24, 2013. If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact plaintiff’s
counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at
800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a
member of this class, you can view a copy of the complaint as filed or join
this class action online at http://www.rgrdlaw.com/cases/avid/. Any member of
the putative class may move the Court to serve as lead plaintiff through
counsel of their choice, or may choose to do nothing and remain an absent
The complaint charges Avid and certain of its officers and directors with
violations of the Securities Exchange Act of 1934. Based in Burlington,
Massachusetts, Avid markets audio and video editing software used in the film,
music, recording, television, concert and news industries.
The complaint alleges that during the Class Period, Avid issued materially
false and misleading statements overstating the Company’s financial results
and prospects. As a result of these false statements, Avid’s common stock
traded at artificially inflated prices during the Class Period, reaching a
Class Period high of more than $23 per share in intraday trading on February
17, 2011, and facilitating the payment of millions of dollars in cash and
equity incentive awards to Avid’s senior executives premised on their reported
overstated revenues and operating earnings.
In July 2011, Avid disclosed significant operational problems in its European
sales operations, which the complaint alleges caused a 25% decline in the
price of Avid’s stock on July 22, 2011. Then, after announcing a mass
termination of the Company’s senior executives (including its CEO/Chairman)
and a 20% workforce reduction, on February 25, 2013, the Company announced it
was unable to timely report its fiscal 2012 results, stating it was reviewing
its accounting for PCS sales revenues. On this news, the market price of Avid
common stock declined precipitously, falling almost 9% and closing at $6.98
per share on February 25, 2013, on unusually high trading.
Subsequently, the Company disclosed that its CFO had also been terminated and
that the U.S. DOJ and the SEC had commenced investigations into the Company’s
accounting practices and disclosures, and on May 21, 2013, the Company
announced that it would have to restate its fiscal 2009, 2010 and 2011
financial reports and those for the interim quarterly periods of 2011 and
2012. In addition, Avid disclosed that costs and expenses had been understated
and the Company had identified internal control deficiencies.
Plaintiff seeks to recover damages on behalf of all purchasers of Avid common
stock during the Class Period (the “Class”). The plaintiff is represented by
Robbins Geller, which has expertise in prosecuting investor class actions and
extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in
contingency-based securities and corporate litigation. With nearly 200 lawyers
in nine offices, the firm represents hundreds of public and multi-employer
pension funds with combined assets under management in excess of $2 trillion.
The firm has obtained many of the largest recoveries and has been ranked
number one in the number of shareholder class action recoveries in MSCI’s Top
SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
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