KIT digital, Inc. (NASDAQ:KITD) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
May 29, 2012 (Shareholders Foundation) -- An investor in NASDAQ:KITD shares filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged Violations of Federal Securities Laws by KIT digital, Inc. (NASDAQ:KITD) in connection with certain financial statements.
According to the complaint the plaintiff alleges on behalf of a class of purchasers of KIT digital, Inc. (NASDAQ:KITD) securities between November 8, 2011 and May 3, 2012, that
KIT digital, Inc. and certain of its senior executives violated the Securities Exchange Act of 1934 by issuing a series of materially allegedly false and misleading statements between November 8, 2011 and May 3, 2012.
KIT digital, Inc. reported that its annual Revenue rose from $23.40million in 2008 to $214.93million in 2011, however its Net Loss increased from $18.98million in 2008 to $27.12million in 2011.
Shares of KIT digital, Inc. (NASDAQ:KITD) rose in 2010 to over $16 per share in December and reached in Janaury 2011 7, 2011 $16.40 per share. During 2011 NASDAQ:KITD shares lost value and closed 2011 at $8.45 per share.
Over the frist months in 2012 NASDAQ:KIT shares reached over $12 in February.
Then on March 23, 2012 KIT digital, Inc said that its Chief Executive Officer, Kaleil Isaza Tuzman, will step down from his role as Chief Executive Officer and that the company has accepted the resignations of four board members.
NASDAQ:KIT shares fell on March 23, 2012 to as low as $6.33.
On March 30, 2012 KIT digital, Inc. disclosed that it had a material weakness in internal control over financial reporting in the past. KIT digital, Inc said its failure to implement and maintain effective internal control over financial reporting could result in material misstatements in its financial statements which could require it to restate financial statements, cause investors to lose confidence in its reported financial information and have a negative effect on its stock price.
On Apr 16, 2012 KIT digital, Inc. (NASDAQ: KITD) announced its board of directors has also accepted the resignation of non-executive Chairman Kaleil Isaza Tuzman.
Then on May 3, 2012, KIT digital, Inc. (NASDAQ: KITD) announced its preliminary first quarter 2012 results. The very same day, a critical report was published that concluded that the former CEO and board Chairman who unexpectedly resigned in April 2012, had "left a mess" at KIT digital, Inc..
NASDAQ: KITD shares fell from $6.34 on May 2, 2012 to $4.42 on May 3, 2012 and continued to decline to as low as $3.48 per share on May 23, 2012.
Overall NASDAQ:KITD shares fell from over $12.50 in February 2012 to under $3.50 in May 2012.