NEW YORK, Jan. 9, 2017 /PRNewswire/ -- 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
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SOURCE Faruqi & Faruqi, LLP