SAN FRANCISCO, Dec. 13, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges Avaya Holdings Corp. (NYSE: AVYA) investors who suffered significant losses to submit your losses now.
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Avaya Holdings Corp. (AVYA) Investigation:
The investigation focuses on Avaya’s repeated claims to have made significant progress in its business model transformation to a cloud and SaaS business model.
On June 27, 2022, Avaya announced $600 million in aggregate financing commitments, including $350 million of new Senior Secured Term Loans and $250 million of Exchangeable Senior Secured Notes. Management claimed “[t]his funding supports and accelerates our business model transformation.”
A month later, on July 28, 2022, Avaya announced its board fired CEO James M. Chirico, Jr. The company also announced disastrous 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, the company withdrew its 2022 guidance. This news sent the price of Avaya shares crashing 57% lower the next day.
Then, on Aug. 9, 2022, Avaya announced: (1) it determined there is 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 Committee also commenced an investigation into matters raised by a whistleblower. This news sent the price of Avaya shares crashing 45% lower that day.
Most recently, on Nov. 30, 2022, Avaya announced it would not timely file its financial statements for its fiscal year ended Sept. 30, 2022, revealed that its internal investigation is continuing, and admitted that it did not appropriately log the whistleblower’s email received by a member of its Board of Directors and did not convey its existence to management or to its outside auditor.
“We’re focused on investors’ losses and whether Avaya lied about progress towards becoming a cloud and SaaS business,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Avaya and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Avaya should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email AVYA@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
