NEW YORK, Dec. 6, 2012 (GLOBE NEWSWIRE) -- Gainey & McKenna announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors who acquired KIT digital, Inc. ("KIT digital" or the "Company") (Nasdaq:KITD) securities between May 19, 2009 and November 21, 2012, inclusive, (the "Class Period"), alleging violations of the Securities Act of 1934 against the Company, certain of its officers and directors (the "Complaint").
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business operations, financial condition and prospects. Specifically, the Complaint alleges that Defendants prepared and filed erroneous financial statements with the U.S. Securities and Exchange Commission ("SEC") during the Class Period. As a result of Defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on November 21, 2012, the Company filed a Form 8-K with the SEC noting that errors and irregularities in its historical financial statements, primarily relating to recognition of revenue from software license agreements, had come to the Company's attention. As a result of those errors and irregularities, the Company stated that "the financial statements for (1) the years ended December 31, 2009, 2010 and 2011 and (2) each of the three quarters in 2009, 2010 and 2011 will be restated. As a result of the restatement of these prior periods, the Company will also restate the quarters ended March 31, 2012 and June 30, 2012[,]... will not timely file its Quarterly Report on Form 10-Q for the three months ended September 30, 2012 and will not issue an earnings release or host an earnings conference call."
If you wish to serve as lead plaintiff, you must move the Court no later than January 29, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. of Gainey & McKenna at (212) 983-1300, or via e-mail at email@example.com.
While Gainey & McKenna did not file the Complaint in this matter, the firm, with offices in New York and New Jersey, regularly prosecutes cases on behalf of shareholders in state and federal courts throughout the United States.
CONTACT: Gainey & McKenna Thomas J. McKenna, Esq. (212) 983-1300 firstname.lastname@example.orgSource: Gainey & McKenna