Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Avid Technology, Inc. (AVID)

NEW YORK, Nov. 22, 2016 -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Avid Technology, Inc. (“Avid” or the “Company”) (Nasdaq:AVID) in the United States District Court for the District of Massachusetts on behalf of purchasers of common stock of Avid between August 4, 2016 and November 9, 2016 (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the Securities Exchange Act of 1934.

Pursuant to the Complaint, the Company knew but failed to disclose that because it had not launched all the enterprise level features for its new NEXIS solution product offerings, its enterprise customers were deferring renewals and purchases.  The Complaint alleges that on November 9, 2016, after the close of trading, Avid suddenly disclosed that both its 3Q16 bookings and revenues had come in considerably lower than the Company had led the investment community to expect, blaming “the transition of the storage product line” and disclosing that “some existing enterprise clients deferred normal upgrade and renewal decisions and new customers postponed investments until the release of functionality targeted to the enterprise market.”  The Complaint alleges that on this news, the Company’s stock price plummeted 28% on November 10, 2016, on unusually high trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than January 20, 2017.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].

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