Berman DeValerio Files Securities Class Action Lawsuit Against KIT digital, Inc.
December 19 2012 - 10:54AM
Business Wire
The law firm of Berman DeValerio has filed a securities class
action lawsuit against KIT digital, Inc. (NASDAQ: KITD)(“KIT
digital” or the “Company”) and certain of its officers
(collectively, with KIT digital, the “Defendants”). KIT digital is
a global provider of on-demand Internet Protocol-based video asset
management systems.
The lawsuit alleges violations of United States securities laws
on behalf of purchasers of KIT digital common stock between May 19,
2009 and November 21, 2012 (the “Class Period”). The complaint was
filed Dec. 18, 2012 in the United States District Court for the
Southern District of New York, as Hughes v. KIT digital et al.,
12-civ-9210 (S.D.N.Y.).
That same day, the Company announced that it had dismissed its
independent auditor, Grant Thornton LLP, and that its stock would
be delisted from the NASDAQ Stock Market effective Dec. 21, 2012.
To receive a copy of the complaint, please call Berman DeValerio at
(800) 516-9926 or click here.
Pursuant to the Private Securities Litigation Reform Act of
1995, investors wishing to serve as the lead plaintiff in the case
must file a motion for appointment with the court no later than
January 29, 2013.
The lawsuit alleges claims under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b) and 78t(a),
and Rule 10b-5 promulgated thereunder by the United States
Securities Exchange Commission on behalf of Class Period
investors.
According to the lawsuit, the Defendants made material false and
misleading statements and failed to disclose material facts about
KIT digital’s business. Specifically, the lawsuit alleges that the
Defendants made false and misleading statements and/or failed to
disclose (1) that there were irregularities with the Company’s
accounting relating, in part, to revenue recognition for certain
license agreements; (2) that the Company’s financial statements
were not prepared in accordance with Generally Accepted Accounting
Principles; (3) that the Company’s internal controls were deficient
and incapable of producing adequate financial reporting, as was
revealed later in the Class Period; and (4) as a result of the
above, the Company’s financial statements were materially false and
misleading at all relevant times.
On November 21, 2012, after the stock markets closed, the
Company announced that it would restate its financial statements
for the fiscal years 2009, 2010, and 2011 and for the first two
quarters of 2012 because of accounting errors and irregularities
relating to the recognition of revenue for software license
agreements. Upon this announcement, the Company’s share price fell
$1.33 per share on November 23, to close at $0.74. The decline in
KIT digital’s stock price represented a loss of over 64%.
If you are a member of the class, you may, no later than January
29, 2013, request that the court appoint you as lead plaintiff for
the class. You may contact Berman DeValerio to discuss your rights
and interest in the case. Please note that you may also retain
counsel of your choice or, alternatively, take no action at this
time, in which case you will still remain a class member.
Berman DeValerio (www.bermandevalerio.com) is a national law
firm representing investors for violations of securities and
antitrust laws. The firm has 41 lawyers in Boston, San Francisco
and Palm Beach Gardens, Florida.
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