Robbins Geller Rudman & Dowd LLP Files Expanded Class Action Suit against Avid Technology, Inc.
Robbins Geller Rudman & Dowd LLP Files Expanded Class Action Suit against Avid Technology, Inc. Business Wire 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 class member. 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 information. Contact: Robbins Geller Rudman & Dowd LLP Samuel H. Rudman, 800-449-4900 David A. Rosenfeld firstname.lastname@example.org