NEW YORK, Nov. 22, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Avid Technology, Inc. (“Avid” or the “Company”) (NASDAQ: AVID ) of the January 20, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Eastern District of Massachusetts on behalf of all those who purchased Avid stock or options between August 4, 2016 and November 9, 2016 (the “Class Period”). The case, Mohanty v. Avid Technology, Inc. et al , No. 16-cv-12336 was filed on November 21, 2016.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose the level of implementation its new NEXIS solution product offerings and, thus, providing the materially false and misleading statements regarding its business, operations, earnings, and financial prospects.
During after-market hours August 3, 2016, Avid announced its second quarter 2016 financial results for the period ended June 30, 2016 (“2Q16”) and increased its fiscal 2016 (“FY16”) financial guidance for the fiscal year ended December 31, 2016. Noting that 2Q16 revenue had increased more than 22% year-over-year driven , the Company increased the upper end of its bookings guidance for the third quarter 2016 (“3Q16”) from $115 million to $120 million and increased the upper end of its 3Q16 revenue guidance from $120 million to $135 million. The Company also increased its bookings and revenue guidance for FY16.
Then, during after-market hours on November 9, 2016, Avid suddenly disclosed that it had failed to meets its previously estimated 3Q16 bookings and revenue guidance. The Company explained that the continuing implementations of the several NEXIS product lines caused a deferral of its enterprise customers’ renewals and purchases which had previously led to the Company rising its booking and revenue guidance.
After the announcement, Avid’s share price fell from $6.32 per share on November 9, 2016 to a closing price of $4.52 on November 10, 2016—a $1.80 or a 28.5% drop.
Request more information now by clicking here: www.faruqilaw.com/AVID. There is no cost or obligation to you.
Take Action
If you invested in Avid stock or options between August 4, 2016 and November 9, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/AVID . You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com . Faruqi & Faruqi, LLP also encourages anyone with information regarding Avid’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( www.faruqilaw.com ). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. rgonnello@faruqilaw.com Telephone: (877) 247-4292 or (212) 983-9330
