NEW YORK, Sept. 21, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors in Avaya Holdings Corp. (“Avaya” or the “Company”) AVYA. Those investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, extension 7980.
The investigation concerns whether Avaya and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.
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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. The company’s management claimed that “[t]its funding supports and accelerates our business model transformation.”
Then, on July 28, 2022, Avaya announced the termination of its chief executive officer, James M. Chirico, Jr. The Company also announced preliminary financial results for the third quarter of 2022, which included expected revenues and Adjusted EBITDA that were significantly below previously provided guidance and an unquantified but “significant” impairment charge. In addition, Avaya withdrew its 2022 guidance .
As a result of this news, Avaya’s stock price fell $1.19 per share, or 56.99%, to close at $0.90 per share on July 29, 2022.
Finally, on August 9, 2022, Avaya announced the following: (1) it determined that there were significant doubts about its ability to continue as a going concern; (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 Audit Committee also initiated an investigation into matters reported by a whistleblower.
As a result of this news, Avaya’s stock price fell $0.51 per share, or 45.54%, to close at $0.61 per share on August 9, 2022.
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