ACCOUNTING FRAUD - LAW FIRM SEEKS TO RECOVER LOSSES FOR SHAREHOLDERS
New York, Nov. 26, 2012 /PRNewswire/ -- Tripp Levy PLLC, a New York-based law firm representing investors nationwide, is investigating possible securities law violations involving KIT digital, Inc. ("KIT" or the "Company") (KITD) following the Company's disclosure on November 21, 2012 of the need to restate its financial results for the years ended December 31, 2009, 2010 and 2011. The Company will also restate the quarters ended March 31 and June 30, 2012 and will not timely file its Form 10-Q with the SEC for the period ended September 30, 2012.
The accounting errors and irregularities causing the restatement relate primarily to recognition of revenue related to perpetual software license agreements. KIT has been unable to provide even a preliminary estimate of the impact of the restatement or when their financial statements will be corrected. Former CEO Kaleil Tuzman, in an open letter to the Board on November 23, 2012, has alleged that the Board "may be conspiring to artificially decrease the Company's stock price so as to acquire the Company at a fire sale price that is unfair to shareholders" and that the Company has spent more cash on operations during the previous seven months than in the prior two years.
News of the restatement shocked the market and the Company's stock price fell by more than 64% - from $2.07 per share on November 21 to $0.74 per share on November 23, 2012. The volume traded on November 23 was more than twice the total volume of the previous month and was the stock's highest single day of trading in at least two years.
The investigation seeks to determine, among other things, whether KIT or its officers and directors have violated the federal securities laws. If you are a shareholder of KIT during this time period and suffered losses on your investment, please contact us for further information regarding how to recover your losses toll free at 877-772-3975 or email at contact @ tripplevy