NEW YORK, May 29, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at KIT Digital, Inc. ("KIT" or the "Company") (NASDAQ: KITD).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) KIT was not achieving its projected growth in earnings and revenues; (2) KIT's integration with acquired companies was overstated; (3) KIT had materially overstated its foreseeable growth and profitability, and had falsely stated that the Company was poised to achieve significant financial success; and (4) KIT's internal controls were deficient.
On May 3, 2012, investors learned that KIT was operating far below guidance, that the integration and administration of the Company's purchased assets had been overstated, and that the true costs of integrating and administering these acquisitions had been understated. Also on May 3, 2012, the Wall Street Journal published a critical report on KIT that concluded Kaliel Tuzman, the former CEO and board Chairman who unexpectedly resigned in April 2012, had "left a mess" at the Company. The Journal reported that KIT's new CEO would not endorse prior guidance.Based on the disparity between prior guidance and KIT's announced results for the first quarter 2012, the Company's shares declined precipitously – falling to an intra-day low of $4.12 per share on May 3, 2012 – compared to the prior day's close of $6.34 per share. Request more information now by clicking here: www.faruqilaw.com/KITD Take ActionIf you purchased KIT securities between November 8, 2011 and May 3, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/KITD. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com or firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding KIT's conduct to contact the firm, including whistleblowers, former employees, shareholders and others. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential matter. FARUQI & FARUQI, LLP369 Lexington Avenue, 10th Floor New York, NY 10017Attn: Richard Gonnello, Esq. email@example.com Francis McConville, Esq. firstname.lastname@example.org Telephone: (877) 247-4292 or (212) 983-9330 SOURCE Faruqi & Faruqi, LLP