Kahn Swick & Foti, LLC ("KSF") and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., inform investors that a securities class action lawsuit has been commenced against KIT digital, Inc. (Nasdaq: KITD). This action was initiated by KSF and is brought on behalf of purchasers of securities of KIT digital during the period from November 8, 2011, until May 3, 2012, inclusive (the "Class Period"). This action is pending in the United States District Court for the Southern District of New York.
What You May Do
If you purchased securities of KIT Digital and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn (lewis.kahn@ksfcounsel.com), toll free, 877-515-1850, or via cell phone any time at 504-301-7900, or KSF Director of Client Relations, Neil Rothstein, Esq. (neil.rothstein@ksfcounsel.com), toll free at 877-694-9510, or via cell phone any time at 330-860-4092. Any member of the putative 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. If you wish to serve as a lead plaintiff in this class action, you must petition the Court by July 25, 2012.
About the Lawsuit
KIT digital and certain of its senior executives are charged with issuing a series of materially false and misleading statements, during the Class Period, in violation of federal securities laws.
During the class period, KIT digital was engaged in acquiring and purportedly integrating companies that were in the business of marketing end-to-end technology platforms for IP based video content providers. Under the leadership of Chairman and Chief Executive Officer, Kaliel Tuzman, from May 2008 to May 2011, KIT digital acquired over a dozen other companies, using cash raised through equity sales and stock as acquisition currency. As a result of its purported success, KIT digital reported "record" setting financial results, and repeatedly upgraded its financial guidance, throughout the Class Period.
The action charges that, on May 3, 2012, investors ultimately learned that KIT digital was operating far below guidance, and that the success of the integration and administration of its purchased assets had been overstated, and that the true costs of integrating and administering these acquisitions was understated.
Based on the disparity between prior guidance and KIT digital's announced results for 1Q:12, on May 3, 2012, its shares declined precipitously - - falling to an intra-day low of $4.12 per share, compared to the prior day's close of $6.34 per share, on May 2, 2012.
It was only at that time that investors first learned that: (i) KIT digital was not achieving its projected growth in earnings and revenues; (ii) the effectiveness of the integration of purchased companies had been materially overstated; (iii) KIT digital had materially overstated its foreseeable growth and profitability, and had falsely stated that the Company was poised to achieve significant financial success; and (iv) it was not true that KIT digital contained adequate systems of controls, such that KIT digital's representations and reports were true, accurate and reliable.
On May 3, 2012, the Wall Street Journal published a critical report on KIT digital that concluded that Kaliel Tuzman, the former CEO and board Chairman who unexpectedly resigned in April 2012, had "left a mess" at the Company. The Journal also reported that KIT digital's new CEO, would not endorse prior guidance.
About Kahn Swick & Foti, LLC
To learn more about KSF, whose partners include the Former Louisiana Attorney General, Charles C. Foti, Jr., and other lawyers with significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders, you may visit www.ksfcounsel.com.
Contacts:
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner,
877-515-1850
or after hours via cell phone 504-301-7900
lewis.kahn@ksfcounsel.com
