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AVYA.US
id: 546, Created by Stan Vick, Scout
Avaya Mismanagement Case
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S.D. New York
Court23-CV-01258
Case numberOn January 12, 2023, Bloomberg reported that Avaya Holdings Corp. has held talks with lenders over a plan that could hand them control of the company as part of a bankruptcy filing.
- Earlier on December 16, 2022, the Wall Street Journal reported that Avaya “is nearing a chapter 11 bankruptcy filing,” citing people familiar with the matter. On this news, Avaya’s stock price plunged 54%.
- On August 9, 2022, the Company released disappointing preliminary Q3 2022 results and disclosed that there is “substantial doubt about the Company’s ability to continue as a going concern.” The Company also announced that its audit committee is investigating a whistleblower letter and its recent earnings report. On this news, Avaya’s stock fell 45.5%.
- On June 28, 2022, Avaya announced certain Preliminary Q3 2022 fiscal financial results according to which it significantly cut revenue and EBITDA projections. The company also informed about finalizing testing of its goodwill and intangible assets which is expected to result in significant non-cash impairment charges as of June 30, 2022. Furthermore, Avaya informed that prior financial guidance should no longer be relied upon. Following this news, the stock plunged by 48%, seriously damaging investors. This dramatic change of financial representation happened just 1 month after Avaya announced $600 million in aggregate financing commitments.
Taking into account all the facts and financial motivation, there is a reasonable suspicion that the rights of shareholders and lenders have been significantly violated.
Alleged Offence
Mismanagement,
Misleading Statements,
Financial Misrepresentation,
Fraud,
Failure to Disclose,
Price manipulation,
Insider Trading,
Malpractice,
Negligence,
Breach of Fiduciary duty,
Omissions
Suspected Party
Directors,
Management,
Shareholder,
Influencer,
Investment Bank,
Service Provider,
Research Entity,
Hedge Fund
Security Type
Stocks
Trade Direction
Long
Shock Event Date
29 November 2022
Filing date
03 January 2023
Lead Plaintiff Deadline
06 March 2023
Judge
Hon. Catherine C. Eagles