Newman Ferrara LLP Files Class Action on Behalf of Shareholders of KIT Digital, Inc.
December 19 2012 - 11:48AM
Business Wire
Newman Ferrara LLP announced today that it filed a class action
lawsuit in the United States District Court for the Southern
District of New York (Hughes v. KIT digital Inc., et al.,
12-cv-9210) on behalf of purchasers of the common stock of KIT
digital, Inc. (“KIT”) (Nasdaq) (“KITD”) for violations of federal
securities laws.
Investors who purchased KIT securities between May 19, 2009 and
November 21, 2012 (the “Class Period”) may apply with the Court to
be appointed Lead Plaintiff no later than January 29, 2013. The
Lead Plaintiff will direct the litigation on behalf of the other
class members. The Court will select the Lead Plaintiff from among
applicants claiming the largest investment losses.
The Complaint alleges that KIT and certain of its officers
issued false and/or misleading statements and/or failed to disclose
that: (1) there were irregularities with KIT’s accounting relating
to improper revenue recognition for certain license agreements; (2)
KIT’s financial statements were not prepared in accordance with
Generally Accepted Accounting Principles; (3) KIT’s internal
controls were deficient and incapable of producing adequate
financial reporting; and (4) as a result of the above, KIT’s
financial statements were materially false and misleading at all
relevant times.
On November 21, 2012, KIT announced that, because of revenue
being improperly recognized in its financial statements, KIT needed
to restate its financial statements for each of the first three
quarters and full years in 2009, 2010 and 2011 and for the first
two quarters of 2012. On this news, shares of KIT stock plummeted
64% in value to a November 23, 2012 price of $0.74 per share and
dropped another 16% on the following trading day to $0.62 per
share.
Investors who purchased shares of KIT stock during the Class
Period and lost more than $100,000 are encouraged to
contact Newman Ferrara attorney Roy Shimon at
rshimon@nfllp.com or call (212) 619-5400 to discuss this lawsuit or
the Lead Plaintiff process.
Newman Ferrara maintains a multifaceted practice based in New
York City with attorneys specializing in complex commercial and
multi-party litigation, securities fraud and shareholder
litigation, consumer protection, civil rights, and real estate. For
more information, please visit the firm website at
www.nfllp.com.
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