AVAYA HOLDINGS CORP. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Avaya Holdings Corp.
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Avaya Holdings Corp. (“Avaya” or the “Company”) (NYSE: AVYA) securities between November 22, 2021 and November 29, 2022, inclusive. The lawsuit seeks to recover Avaya shareholders’ investment losses.
If you purchased securities in Avaya between November 22, 2021 and November 29, 2022, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
Avaya purports to be a “global leader in digital communications products, solutions and services for businesses of all sizes delivering its technology predominantly through software and services.” The Company claims that its “global, experienced team of professionals delivers award-winning services from initial planning and design, to seamless implementation and integration, to ongoing managed operations, optimization, training and support.”
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose 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 James M. Chirico, Jr. The Company also announced preliminary Q3 2022 financial results that included expected revenues and adjusted EBITDA well below previously given guidance and an unquantified but “significant” impairment charge. In addition, Avaya withdrew its 2022 guidance.
On this news, Avaya’s stock price fell $1.19 per share, or 56.99%, to close at $0.90 per share on July 29, 2022.
Then, on August 9, 2022, Avaya announced that: (1) it determined 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 ended June 30, 2022; (3) its Audit Committee commenced internal investigations into circumstances surrounding the Company’s financial results for the quarter; and (4) the Audit Committee also commenced an investigation into matters raised by a whistleblower.
On this news, Avaya’s stock price fell $0.51 per share, or 45.54%, to close at $0.61 per share on August 9, 2022.
Finally, before the market opened on November 30, 2022, Avaya disclosed in a Current Report filed on Form 8-K with the SEC that “control deficiencies management had been reviewing represent material weaknesses in the Company’s internal control over financial reporting” and that “management’s assessment of ICFR included in Item 9A of the Company’s Annual Report on Form 10-K for its fiscal year 2021 ended September 30, 2021, filed with the [SEC] on November 22, 2021  should no longer be relied upon.” Specifically, the Form 8-K stated that the Company “did not design and maintain effective controls related to the information and communication component of the COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework,” “did not design and maintain effective controls to ensure appropriate communication between certain functions within the Company,” and “did not design and maintain effective controls over the ethics and compliance program.”
On this news, Avaya’s stock price fell $0.16 per share, or 14.28%, to close at $0.96 per share on November 30, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than March 6, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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