SAN FRANCISCO, Sept. 14, 2022 (GLOBE NEWSWIRE) — Hagens Berman is calling for Avaya Holdings Corp. (NYSE: AVYA) Investors who have suffered significant losses Submit your losses now.
Avaya Holdings Corp. (AVYA) investigation:
The investigation focuses on Avaya’s repeated claims that it has made significant progress in transforming its business model into a cloud and SaaS business model.
On June 27, 2022, Avaya announced financing commitments totaling $600 million, including $350 million in new Senior Secured Term Loans and $250 million in Exchangeable Senior Secured Notes. Management claimed: “[t]His funding supports and accelerates our business model transformation.”
A month later, on July 28, 2022, Avaya announced that its board-fired CEO, James M. Chirico, Jr., had been announced. The company also announced disastrous third quarter 2022 preliminary financial results, which expected revenues and Adjusted EBITDA to be well below previously provided guidance and an unquantified but “significant” impairment charge. In addition, the company withdrew its guidance for 2022. The news sent Avaya shares down 57% the next day.
Then, on August 9, 2022, Avaya announced: (1) It determined that there are significant doubts about its ability to continue as a company; (2) it would not timely file its financial statements for the quarter ended June 30, 2022; (3) its Audit Committee has initiated an internal investigation into circumstances surrounding the Company’s financial results for the quarter; and (4) the Committee also initiated an investigation into matters reported by a whistleblower. The news sent Avaya shares down 45% on the day.
“We are focused on investor losses and whether Avaya lied about progress toward becoming a cloud and SaaS company,” said Reed Kathrein, the partner at Hagens Berman who led the investigation.
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