WEST HARTFORD, CT--(Marketwire - Jun 6, 2012) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the publicly traded securities of KIT digital, Inc. ("KIT digital" or the "Company") (NASDAQ: KITD) between November 8, 2011 and May 3, 2012 inclusive (the "Class Period").
The Complaint alleges that KIT digital and certain of its officers and directors violated the federal securities laws. Specifically, it is alleged that during the Class Period, KIT digital had no reasonable basis for its financial projections, was not effectively integrating acquired companies contrary to statements otherwise and lacked adequate internal controls.
On May 3, 2012, the Wall Street Journal published a critical article about the Company entitled "Investors Need First Aid KIT." The article stated that KIT digital's new CEO would likely have to backtrack on previous financial projections made by the former CEO and that the Company failed to properly integrate acquisitions or put the necessary corporate structure in place to handle growth. Additionally, in its latest annual financing filing, KIT digital's auditor disclosed that the Company lacked sufficient accounting personnel to review transactions citing a material weakness in internal controls.
If you are a member of the class, you may, no later than July 25, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/kitdigital/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firstname.lastname@example.org. For more information about class action cases in general, please visit our website: www.izardnobel.com.