Further, the Company disclosed that “[a]s part of the restatement, the Company will adjust the financial statements for errors identified during prior periods, recording the adjustments in the appropriate historical period. Because of the Company’s ongoing review and investigation of certain transactions, the Company requires additional time to complete an analysis of the accounting treatment for the software licenses and to determine the extent of the corrections that may be required to its historical financial statements” and that “the Company cannot currently quantify the potential impact of the restatement.” On this news, shares in KIT digital plummeted 70% in the next two trading days, closing at $0.62 per share on November 26, 2012, from a close of $2.07 per share on November 21, 2012, on a combined volume of over 25 million shares.If you wish to serve as lead plaintiff, you must move the Court no later than January 29, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States. Attorney advertising. Prior results do not guarantee a similar outcome.
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the securities of KIT digital, Inc. (“KIT digital” or the “Company”) (NASDAQ GS: KITD) between May 19, 2009 and November 21, 2012, inclusive, (the “Class Period”) alleging violations of the Securities Act of 1934 against the Company, certain of its officers and directors (the “Complaint”). If you purchased shares of KIT digital during the Class Period, or prior to the Class Period and still maintain those shares, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to email@example.com, or at: http://www.rigrodskylong.com/investigations/kit-digital-inc-kitd-fraud. KIT digital, a Delaware corporation headquartered in New York, New York, is a premium provider of end-to-end video management software and services. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business operations, financial condition and prospects. Specifically, the Complaint alleges that the defendants prepared and filed erroneous financial statements with the U.S. Securities and Exchange Commission (“SEC”) during the Class Period. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period. According to the Complaint, on November 21, 2012, the Company filed a Form 8-K with the SEC noting that errors and irregularities in its historical financial statements, primarily relating to recognition of revenue from software license agreements, had come to the Company’s attention. As a result of those errors and irregularities, the Company stated that “the financial statements for (1) the years ended December 31, 2009, 2010 and 2011 and (2) each of the three quarters in 2009, 2010 and 2011 will be restated. As a result of the restatement of these prior periods, the Company will also restate the quarters ended March 31, 2012 and June 30, 2012[,] . . . will not timely file its Quarterly Report on Form 10-Q for the three months ended September 30, 2012 and will not issue an earnings release or host an earnings conference call.”