NEW YORK, July 13, 2012 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross has filed a securities class action against KIT Digital Inc. ("KIT" or the "Company") (Nasdaq:KITD) and certain of its officers. The class action (12 Civ. 5446), filed in the United States District Court, Southern District of New York, is on behalf of all persons or entities who purchased KIT securities between November 9, 2011 and May 2, 2012, inclusive (the "Class Period"). This class action seeks to recover damages caused by the Company's violations of the federal securities laws and to pursue remedies under Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder against the Company and certain of its top officials.
If you are a shareholder who purchased KIT securities during the Class Period, you have until July 25, 2012 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888-476-6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
KIT is a global provider of on-demand, Internet Protocol (IP)-based video asset management solutions. The Complaint alleges that throughout the Class Period, the Company made false and/or misleading statements, as well as failed to disclose material adverse facts that: (i) the Company lacked appropriate financial personnel with understanding of U.S. Generally Accepted Accounting Principles to ensure proper financial reporting; (ii) the Company overstated the effectiveness of its integration of acquired companies; (iii) the Company failed to report the true costs of several of its acquisitions, including the cost of proper administration and integration into the Company; (iv) the Company had materially overstated its foreseeable growth and profitability; (v) the Company lacked adequate internal and financial controls; and (vi) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On March 23, 2012, the Company disclosed the resignation of its Chief Executive Officer and four directors from its Board of Directors including the independent director who resigned "because of differences of opinion with other members of the Board over issues related to the Company's operations, policies and management." On this news, KIT shares fell $1.82 per share or 22%, to close at $6.33 per share on March 23, 2012.
On May 2, 2012, The Wall Street Journal published an article that concluded that KIT former Chief Executive Officer Kaleil Tuzman had "left a mess" at the Company, which the new Chief Executive Officer "may have a tough time cleaning up." On this news, KIT securities fell $1.92 per share or more than 30%, to close at $4.42 per share on May 3, 2012.
The Pomerantz Firm, with offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 75 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.