SAN DIEGO, Nov. 21, 2016 /PRNewswire/ -- Shareholder rights law firm Johnson & Weaver, LLP announced today that a class action has been commenced in the United States District Court for the District of Massachusetts on behalf of all purchasers of Avid Technology, Inc. (NASDAQ: AVID) common stock during the period between August 4, 2016 and November 9, 2016, inclusive (the "Class Period"). Defendants are Avid Technology, Inc., Louis Hernandez, Jr., and Ilan Sidi.
If you wish to serve as a lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If you email, please include your phone number. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.johnsonandweaver.com. 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.
The complaint alleges that during the Class Period, Avid Technology made materially false and misleading statements regarding its business, operations, earnings, and financial prospects. Specifically, the complaint alleges that during the Class Period Avid knew but failed to disclose that because it had not launched all the enterprise level features for its new NEXIS solution product offerings, its enterprise customers were deferring renewals and purchases. The complaint alleges that on November 9, 2016, after the close of trading, Avid suddenly disclosed that both its 3Q16 bookings and revenues had come in considerably lower than the Company had led the investment community to expect, blaming "the transition of the storage product line" and disclosing that "some existing enterprise clients deferred normal upgrade and renewal decisions and new customers postponed investments until the release of functionality targeted to the enterprise market." The complaint alleges that on this news, the Company's stock price plummeted 28% on November 10, 2016, on unusually high trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Avid's common stock during the Class Period.
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Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.