BIRMINGHAM, Ala., Dec. 19, 2012 (GLOBE NEWSWIRE) -- The firm of DONALDSON & GUIN, LLC is investigating KIT Digital, Inc. ("KIT Digital") for potential securities law violations following the company's disclosure that it will be restating its financial statements for the years ending December 31, 2009, 2010 and 2011, as well as all interim periods, and the first and second quarter statements for 2012, following accounting errors and irregularities in the company's recognition of revenue relating to software licensing agreements.
According to Donaldson & Guin law partner Tammy Stokes, "We believe that financial statements are material statements of a company's overall financial health made to investors. If the company failed to disclose or misrepresented financial information regarding its revenue to its investors, those investors may have valuable claims against the company or certain of its officers and directors for violating federal securities laws."
A class action has been filed in New York on behalf of anyone who purchased KIT Digital securities between May 19, 2009 and November 21, 2012 (the "Class Period"). By law, anyone who bought KIT Digital securities during the Class Period has until January 29, 2013 to ask the court to name them the lead plaintiff for the lawsuit. Although an investor does not have to be named a lead plaintiff to participate in a securities class action, the lead plaintiff has more power to control the litigation and the lawyers representing the investors.
KIT Digital investors who experienced large losses and who are interested in serving as lead plaintiffs for this class action lawsuit are encouraged to contact Tammy Stokes of Donaldson & Guin by email at tstokes@dglawfirm.com or telephone at 205-503-4512 to discuss their legal rights and options.
The law firm of Donaldson & Guin, LLC, with offices in Chicago and Birmingham, represents individuals, businesses and institutional investors in complex financial litigation, including securities, antitrust and similar litigation. For more information about the firm, please visit http://www.donaldsonguin.com. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other attorneys.