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SHAREHOLDER ALERT: Avaya Holdings Corp. Under Investigation for Misleading Investors

AVYA

SAN FRANCISCO, Sept. 8, 2022 /PRNewswire/ -- Schubert Jonckheer & Kolbe LLP is investigating technology company Avaya Holdings Corp. (NYSE: AVYA) for disclosing a 60% earnings miss only weeks after borrowing $600 million from investors.

Avaya specializes in products and services that enhance business communications, including cloud technology and workstream collaboration solutions. On June 23, 2022, Avaya announced the opening of a $600 million offering to institutional investors. The debt deal included a $350 million term loan and $250 million in exchangeable notes.

Only weeks later, on July 28, 2022, Avaya revealed that it expected to miss its adjusted earnings forecast by more than 60% for the third quarter ending June 30, 2022. The same day, Avaya announced that it was removing and replacing its CEO. This caused immediate losses to investors and a 50% drop in the company's stock price.

Avaya did not disclose a reason for the earnings shortfall at the time but later announced on August 9, 2022 that its Audit Committee had opened internal investigations to review the circumstances surrounding the third quarter 2022 financial results and a whistleblower letter. Due to the internal investigations and significant non-cash impairment charges, Avaya stated that it would be unable file a timely Form 10-Q. Avaya also announced "substantial doubt about the Company's ability to continue as a going concern."

The Schubert Firm is investigating whether Avaya violated state and federal laws and utilized misleading business information to entice investors.

If you purchased Avaya securities, suffered losses, and would like to learn more about this claim, please contact us today or visit our website at https://www.classactionlawyers.com/avaya.

About Schubert Jonckheer & Kolbe LLP

Schubert Jonckheer & Kolbe represents shareholders, employees, and consumers in class actions against corporate defendants, as well as shareholders in derivative actions against their officers and directors. The firm is based in San Francisco, and with the help of co-counsel, litigates cases nationwide.

Contact
Amber L. Schubert
Schubert Jonckheer & Kolbe LLP
aschubert@sjk.law
Tel: 415-299-8257

Cision View original content:https://www.prnewswire.com/news-releases/shareholder-alert-avaya-holdings-corp-under-investigation-for-misleading-investors-301620235.html

SOURCE Schubert Jonckheer & Kolbe LLP

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