Cohen Milstein Sellers & Toll PLLC Continues to Investigate Avid Technology, Inc. Following the Replacement of Its CFO
WASHINGTON--(BUSINESS WIRE)-- 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 (NAS: 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.
On April 22, 2013, Avid announced that John Frederick would become Avid's Executive Vice President, Chief Financial Officer and Chief Administrative Officer, effective immediately, and that Ken Sexton would transition from his role in those positions to become a consultant with the company.
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 firstname.lastname@example.org. 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.
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: email@example.com; firstname.lastname@example.org
KEYWORDS: United States North America District of Columbia
The article Cohen Milstein Sellers & Toll PLLC Continues to Investigate Avid Technology, Inc. Following the Replacement of Its CFO originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.