The Law Offices of Frank R. Cruz reminds investors of the upcoming March 6, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Avaya Holdings Corp. (“Avaya” or the “Company”) (OTC: AVYAQ) securities between October 3, 2019 and November 29, 2022, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On July 28, 2022, Avaya announced the termination of its Chief Executive Officer. The Company also announced that preliminary financial results for its third quarter 2022 fell below previously given guidance and withdrew its fiscal 2022 guidance.
On this news, Avaya’s stock price fell $1.19, or 57%, to close at $0.90 per share on July 29, 2022, thereby injuring investors.
Then on August 9, 2022, Avaya disclosed that there was “substantial doubt about the Company’s ability to continue as a going concern.” The Company also announced that its audit committee was investigating a whistleblower letter as well as the circumstances surrounding its recent earnings report. Avaya also stated that it would not timely file its financial statements for the quarter ended June 30, 2022.
On this news, Avaya’s stock price fell $0.51, or 45.5%, to close at $0.61 per share on August 9, 2022, thereby injuring investors further.
Then, on November 20, 2022, Avaya disclosed that there were material weaknesses in its internal control over financial reporting. Specifically, the Company did not maintain effective controls to ensure effective communication between certain functions and did not maintain effective controls over the ethics and compliance program.
On this news, Avaya’s stock price fell $0.16, or 14.3%, to close at $0.96 per share on November 30, 2022.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company's internal control over financial reporting ("ICFR") was deficient in several areas; (2) 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; (3) the Company's deteriorating financial condition was likely to raise substantial doubt as to its ability to continue as a going concern; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired Avaya securities during the Class Period, you may move the Court no later than March 6, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.