KIT digital, Inc. : Newman Ferrara LLP Files Class Action on Behalf of Shareholders of KIT Digital, Inc.
12/19/2012| 11:50am US/Eastern
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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.
Newman Ferrara LLP
Attorney: Roy Shimon, 212-619-5400
rshimon@nfllp.com
© Business Wire 2012
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