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Robbins Geller Rudman & Dowd LLP announces that the Avaya class action lawsuit – captioned Fletcher v. Avaya Holdings Corp., No. 23-cv-00003 (M.D.N.C.) – charges Avaya Holdings Corp. as well as certain of its top executives with violations of the Securities Exchange Act of 1934.
You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Avaya class action lawsuit must be filed with the court no later than March 6, 2023.
CASE ALLEGATIONS: Avaya purports to be a “global leader in digital communications products, solutions and services for business of all sizes delivering its technology predominantly through software and services.”
The Avaya class action lawsuit alleges that defendants failed to disclose that: (i) Avaya’s internal control over financial reporting (“ICFR”) was deficient in several areas; (ii) as a result of these deficiencies, Avaya had failed to design and maintain effective controls over its whistleblower policies and its ethics and compliance program; and (iii) Avaya’s deteriorating financial condition was likely to raise substantial doubt as to its ability to continue as a going concern.
On July 28, 2022, Avaya announced the termination of its CEO, defendant James M. Chirico, Jr. Avaya also announced preliminary third quarter of 2022 financial results that included expected revenues and adjusted earnings before interest, taxes, depreciation, and amortization well below previously given guidance and an unquantified but “significant” impairment charge. Avaya also withdrew its 2022 guidance. On this news, Avaya’s stock price declined more than 56%.
Then, on August 9, 2022, Avaya announced that: (1) Avaya determined there was substantial doubt about its ability to continue as a going concern; (2) Avaya would not timely file its financial statements for the quarter ended June 30, 2022; (3) Avaya’s Audit Committee commenced internal investigations into circumstances surrounding Avaya’s financial results for the quarter; and (4) the Audit Committee also commenced an investigation into matters raised by a whistleblower. On this news, Avaya’s stock price declined more than 45%.
Thereafter, on November 30, 2022, Avaya disclosed that “control deficiencies that management had been reviewing represent material weaknesses in [Avaya’s] [ICFR]” and that “management’s assessment of ICFR included in Item 9A of [Avaya’s] Annual Report on Form 10-K for its fiscal year 2021 ended September 30, 2021, filed with the [U.S.] Securities and Exchange Commission (the ‘SEC’) on November 22, 2021 . . . should no longer be relied upon.” Specifically, Avaya revealed that it “did not design and maintain effective controls related to the information and communication component of the COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework,” “did not design and maintain effective controls to ensure appropriate communication between certain functions within [Avaya],” and “did not design and maintain effective controls over the ethics and compliance program.” On this news, Avaya’s stock price declined more than 14%, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Avaya securities during the class period to seek appointment as lead plaintiff. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Avaya class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Avaya class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Avaya class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors in 2021 – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
Contact:
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, Suite 1900, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
jsanchez@rgrdlaw.com
