NEW YORK, April 29, 2013 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Avid Technology, Inc. ("Avid" or the "Company") (NASDAQ: AVID).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Avid incorrectly accounted for its Software Updates by failing to properly treat them as post-contract customer support under the Generally Accepted Accounting Principles ("GAAP"); and (2) Avid lacked adequate internal and financial controls.
On February 25, 2013, the Company disclosed that it was postponing the release of its financial results for the fourth quarter of 2012, stating that it would 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 these revelations, Avid shares declined $0.68 per share or nearly 9%, to close at $6.98 per share on February 25, 2013.
On March 21, 2013, the Company announced that it had received a notification letter from NASDAQ indicating that Avid was no longer in compliance due to the Company's delay in filing its annual report. On this news, Avid shares declined an additional $0.26 per share or 3.81%, to close at $6.56 per share on March 22, 2013.
If you invested in Avid stock or options between April 22, 2011 and February 22, 2013 and would like to discuss your legal rights, visit www.faruqilaw.com/AVID. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected] or [email protected]. Faruqi & Faruqi, LLP also encourages anyone with information regarding Avid's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP 369 Lexington Avenue, 10th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. [email protected] Francis McConville, Esq. [email protected] Telephone: (877) 247-4292 or (212) 983-9330