According to the law firm press release, Avid develops, markets, sells, and supports a variety of software and systems for creating and manipulating digital media content. The Company develops and sells digital editing systems and newsroom computer systems, as well as digital audio systems. Avid’s products are used worldwide in production and post-production film, video, and television facilities.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or 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, the Company’s statements were materially false and misleading at all relevant times. As a result of Defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's securities, Plaintiff and other Class members have suffered significant losses and damages.
On February 25, 2013, the Company disclosed 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 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 as it was no longer in compliance due to the 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.
An amended complaint was filed on September 16, 2013.
On December 31, 2014, the parties entered into a Stipulation of Settlement. The Settlement was preliminarily approved on January 14, 2015. The Settlement was granted final approval and this case was dismissed on May 12, 2015.