NEW YORK, April 19, 2013 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of all persons or entities who purchased the common stock of Avid Technology, Inc. ("Avid" or the "Company") (Nasdaq:AVID) between April 22, 2011 to February 22, 2013, seeking remedies under the federal securities laws.
The Complaint alleges that throughout the Class Period Defendants issued false and misleading statements and failed to disclose material adverse facts about the Company's business, operations and prospects. Specifically, Defendants failed to disclose that: (1) the Company incorrectly accounted for its software updates by failing to properly treat the software updates as post-contract customer support under U.S. Generally Accepted Accounting Principles; (2) the Company lacked adequate internal and financial controls; and (3) as a result of the foregoing, certain Company statements were materially false and misleading.
On February 25, 2013, the Company announced that it was postponing the release of its financial results for the fourth quarter of 2012 as it will need 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." On this news, Avid shares declined $0.68 per share or nearly 9%, to close at $6.98 per share on February 25, 2013.
If you wish to serve as lead plaintiff, you must move the Court no later than May 24, 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. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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Source:Gainey McKenna& Egleston