This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Newman Ferrara LLP Files Class Action On Behalf Of Shareholders Of KIT Digital, Inc.

Newman Ferrara LLP announced today that it filed a class action lawsuit in the United States District Court for the Southern District of New York ( Hughes v. KIT digital Inc., et al., 12-cv-9210) on behalf of purchasers of the common stock of KIT digital, Inc. (“KIT”) (Nasdaq) (“KITD”) for violations of federal securities laws.

Investors who purchased KIT securities between May 19, 2009 and November 21, 2012 (the “Class Period”) may apply with the Court to be appointed Lead Plaintiff no later than January 29, 2013. The Lead Plaintiff will direct the litigation on behalf of the other class members. The Court will select the Lead Plaintiff from among applicants claiming the largest investment losses.

The Complaint alleges that KIT and certain of its officers issued false and/or misleading statements and/or failed to disclose that: (1) there were irregularities with KIT’s accounting relating to improper revenue recognition for certain license agreements; (2) KIT’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (3) KIT’s internal controls were deficient and incapable of producing adequate financial reporting; and (4) as a result of the above, KIT’s financial statements were materially false and misleading at all relevant times.

On November 21, 2012, KIT announced that, because of revenue being improperly recognized in its financial statements, KIT needed to restate its financial statements for each of the first three quarters and full years in 2009, 2010 and 2011 and for the first two quarters of 2012. On this news, shares of KIT stock plummeted 64% in value to a November 23, 2012 price of $0.74 per share and dropped another 16% on the following trading day to $0.62 per share.

Investors who purchased shares of KIT stock during the Class Period and lost more than $100,000 are encouraged to contact Newman Ferrara attorney Roy Shimon at rshimon@nfllp.com or call (212) 619-5400 to discuss this lawsuit or the Lead Plaintiff process.

Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.



1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs