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Pomerantz LLP announces that a class action lawsuit has been filed against Avaya Holdings Corp. , and certain officers. The class action, filed in the United States District Court for the Middle District of North Carolina, and docketed under 23-cv-00003, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Avaya securities between November 22, 2021 and November 29, 2022, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchase or otherwise acquired Avaya securities, you have until March 6, 2023 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at newaction@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Avaya purports to be a “global leader in digital communications products, solutions and services for businesses of all sizes delivering its technology predominantly through software and services.” The Company claims that its “global, experienced team of professionals delivers award-winning services from initial planning and design to seamless implementation and integration, to ongoing managed operations, optimization, training and support.”
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s internal control over financial reporting (“ICFR”) was deficient in several areas; (ii) as a result of these deficiencies, the Company had failed to design and maintain effective controls over its whistleblower policies and its ethics and compliance program; (iii) the Company’s deteriorating financial condition was likely to raise substantial doubt as to its ability to continue as a going concern; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On July 28, 2022, Avaya announced the termination of its Chief Executive Officer James M. Chirico, Jr.. The Company also announced preliminary Q3 2022 financial results that included expected revenues and adjusted EBITDA well below previously given guidance and an unquantified but “significant” impairment charge. In addition, Avaya withdrew its 2022 guidance.
On this news, Avaya’s stock price fell $1.19 per share, or 56.99%, to close at $0.90 per share on July 29, 2022.
Then, on August 9, 2022, Avaya announced that: (1) it determined there was substantial doubt about its ability to continue as a going concern; (2) it would not timely file its financial statements for the quarter ended June 30, 2022; (3) its Audit Committee commenced internal investigations into circumstances surrounding the Company’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 fell $0.51 per share, or 45.54%, to close at $0.61 per share on August 9, 2022.
Finally, before the market opened on November 30, 2022, Avaya disclosed in a Current Report filed on Form 8-K with the SEC that “control deficiencies [] management had been reviewing represent material weaknesses in the Company’s internal control over financial reporting” and that “management’s assessment of ICFR included in Item 9A of the Company’s Annual Report on Form 10-K for its fiscal year 2021 ended September 30, 2021, filed with the [SEC] on November 22, 2021 [] should no longer be relied upon.” Specifically, the Form 8-K stated that the Company “did not design and maintain effective controls related to the information and communication component of the Committee of Sponsoring Organizations of the Treadway Commission framework,” “did not design and maintain effective controls to ensure appropriate communication between certain functions within the Company,” and “did not design and maintain effective controls over the ethics and compliance program.”
On this news, Avaya’s stock price fell $0.16 per share, or 14.28%, to close at $0.96 per share on November 30, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
