Our law firm is filing potential claims on behalf of shareholders of Avid Technology, Inc. (AVID) over possible violations of US securities laws.
Did you purchase Avid Technology, Inc. (AVID) stock? If so, you may be entitled to compensation,
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After raising questions during an earlier hearing, a Massachusetts federal judge has grant preliminary approval to a $1.3 million securities fraud lawsuit against Burlington, Mass.-based Avid Technology, Inc.
Avid Technology, a manufacturer of nonlinear editing systems and related multimedia products that are used by film and television businesses, has been accused by lead plaintiff Prakash Mohanty and other investors of misleading people who bought the company’s stock.
Claims in the plaintiff’s lawsuit allege that the company announced that it would soon launch a new storage product that, while exciting customers, also caused them to postpone renewing their subscriptions with the company.
As a result, the company was forced to slash its booking guidance by 21 percent and revenue guidance by 8.5 percent in November 2016. On a conference call that day, Avid’s CEO, Louis Hernandez, Jr., told investors that the decline in subscriptions had been expected.
The company’s share price fell by 28 percent the day after the announcement.
While the company has denied wrongdoing on its behalf and on behalf of its executives, they agreed to settle the case to avoid “protracted and expensive” litigation, according to a court filing.
The settlement of $1.325 million is roughly 6.8 percent of the total amount that could have been recovered, according to the plaintiffs. Avid told the court that the percentage amount is on the high end of the average for securities class action settlements. One-third of the settlement will pay the fees for the plaintiffs’ attorneys.
While both parties had agreed to the settlement, it had hit a snag earlier in the process when U.S. District Court Judge Indira Talwani questioned why members of the settlement class who asked to be excluded from the settlement would have to provide information about the dates, amounts, and prices of their stock transactions.
During the last hearing, Judge Talwani suggested that investors seeking to opt out of the agreement shouldn’t be required to provide the information. As a result of her concerns, the revised agreement no longer forces people opting out to disclose the price they paid for their Avid shares.
Settlement of Avid Technology, Inc. (AVID) Shareholder Lawsuit
Avid Technology, Inc. (AVID) investors may be able to collect significant financial compensation for their losses. The recent settlement with the company has set aside tens of millions of dollars for compensating shareholders.
Own shares of Avid Technology, Inc. (AVID) ? Avid Technology, Inc. (AVID) Shareholder Lawsuit Settlement. Contact us to protect your rights.
If you have purchased shares of Avid Technology, Inc. (AVID), complete the form on this page or call 1-800-934-2921 right now to protect your rights.