According to the law firm press release, the complaint alleges that during the Class Period, Avid Technology made materially false and misleading statements regarding its business, operations, earnings, and financial prospects. Specifically, the complaint alleges that during the Class Period Avid knew but failed to disclose that because it had not launched all the enterprise level features for its new NEXIS solution product offerings, its enterprise customers were deferring renewals and purchases. The complaint alleges that on November 9, 2016, after the close of trading, Avid suddenly disclosed that both its 3Q16 bookings and revenues had come in considerably lower than the Company had led the investment community to expect, blaming "the transition of the storage product line" and disclosing that "some existing enterprise clients deferred normal upgrade and renewal decisions and new customers postponed investments until the release of functionality targeted to the enterprise market." The complaint alleges that on this news, the Company's stock price plummeted 28% on November 10, 2016, on unusually high trading volume.
Avid Technology, Inc. Securities Litigation (2016)
Nov 29, 2016 | Avid Technology, Inc. NASDAQ: AVID | Case Status: Settled
If you purchased a significant amount of shares of Avid Technology, Inc. (NASDAQ: AVID) between August, 4th 2016 and November, 9th 2016, and/or if you purchased Avid Technology, Inc. (NASDAQ: AVID) shares in August 2016 or earlier and currently hold any of those shares, you have certain options. Investors should register for updates.
Sign up for free to create a personalized portfolio with tracking and e-mail alerts for Avid Technology, Inc.
First Identified Complaint
Prakash Mohanty, et al. v. Avid Technology, Inc., et al.
First Identified Complaint Filings
|#||Document Title||Filing Date|
|1||Complaint for Violations of the Federal Securities Laws||November, 21st 2016|