Block & Leviton LLP Investigates KIT digital, Inc. and Certain
of Its Officers and Directors for Possible Violations of the
Federal Securities Laws
BOSTON, Nov. 26, 2012 /PRNewswire/ -- Block &
Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors
nationwide, is investigating possible securities law violations
involving KIT digital, Inc. ("KIT" or the "Company") (NASDAQ: KITD)
following the Company's disclosure on November 21, 2012 of the need to restate its
financial results for the years ended December 31, 2009, 2010 and 2011. The
Company will also restate the quarters ended March 31 and June 30,
2012 and will not timely file its Form 10-Q with the SEC for
the period ended September 30,
2012.
The accounting errors and irregularities causing the restatement
relate primarily to recognition of revenue related to perpetual
software license agreements. KIT has been unable to provide
even a preliminary estimate of the impact of the restatement or
when their financial statements will be corrected. Former CEO
Kaleil Tuzman, in an open letter to the Board on November 23, 2012, has alleged that the Board
"may be conspiring to artificially decrease the Company's stock
price so as to acquire the Company at a fire sale price that is
unfair to shareholders" and that the Company has spent more cash on
operations during the previous seven months than in the prior two
years.
News of the restatement shocked the market and the Company's
stock price fell by more than 64% - from $2.07 per share on November 21 to $0.74 per share on November 23, 2012. The volume traded on
November 23 was more than twice the
total volume of the previous month and was the stock's highest
single day of trading in at least two years.
Block & Leviton's investigation seeks to determine, among
other things, whether KIT or its officers and directors have
violated the federal securities laws. If you have any
information relevant to this investigation, or have questions about
your legal rights, please contact attorney Steven Harte of Block & Leviton LLP at (617)
398-5600 or email him at Steven@blockesq.com.
Block & Leviton is a Boston-based law firm representing investors
for violations of securities laws. The firm's lawyers have
collectively been prosecuting securities cases on behalf of
investors for over 50 years.
This notice may constitute attorney advertising.
Contact:
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BLOCK
& LEVITON LLP
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Steven P.
Harte, Esq.
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(617)
398-5600
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Steven@blockesq.com
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SOURCE Block & Leviton LLP