INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Avaya Holdings Corp. (NYSE: AVYA) (OTC: AVYAW) Shareholders
NEWTOWN, PA, January 17, 2023– The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers and holders of Avaya Holdings Corp. (“Avaya”) (NYSE: AVYA) (OTC: AVYAW) common stock.
Investors who purchased Avaya Holdings Corp. common stock between November 22, 2021, and November 29, 2022 (the “Class Period”) may move the U.S. District Court for the Middle District of North Carolina to appoint them as lead plaintiff, no later than March 6, 2023. Current holders of Avaya stock may pursue corporate governance reforms. Investors who wish to discuss their losses on Avaya stock should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Avaya Holdings Corp.
Avaya, headquartered in North Caronia, provides digital communication products, solutions, and services for businesses and delivers its technology predominately through software and services. Their mission is to “reimagine digital communications with innovation that defines the future of work and the customer experience”.
The Securities Fraud Claims
The Complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements, and failed to disclose material adverse facts, regarding the Company’s business, operations, and prospects. Specifically, that: (i) the Company’s internal control over financial reporting (“ICFR”) was deficient in several areas; (ii) as a result of these deficiencies, the Company had failed to design and maintain effective controls over its whistleblower policies and its ethics and compliance program; and (iii) the Company’s deteriorating financial condition was likely to raise substantial doubt as to its ability to continue as a going concern.
On July 28, 2022, Avaya announced the termination of its Chief Executive Officer Hames M. Chirico, Jr as well as preliminary Q3 2022 financial results. These results included expected revenues and adjusted EBITDA well below previously given guidance and an unquantified but “significant” impairment change. Avaya also withdrew its 2022 guidance. On this news, Avaya’s stock fell $1.19 per share, or almost 57%, to close at $0.90 per share on July 29, 2022.
On August 9, 2022, Avaya announced that: (1) based on their determination there was substantial doubt about its ability to continue as a going concern; (2) it would not timely file its financial statements for the quarter that ended on June 30, 2022; (3) its Audit Committee commenced internal investigations into circumstances regarding the Company’s financial results for the quarter; and (4) the Audit Committee started an investigation into matters raised by a whistleblower. On this news, Avaya stock price fell $0.51 per share, or 45.54%, to close at $0.61 per share on August 9, 2022.
Before the market closed on November 30, 2022, Avaya disclosed that “control deficiencies management had been reviewing represent material weakness in the Company’s internal control over financial reporting” among other things. On this news, Avaya stock price fell $0.16 per share, or 14.28%, to close at $0.96 per share on November 30, 2022.
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Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.