NEW YORK, NY / ACCESSWIRE / April 10, 2024 / Pomerantz LLP is investigating claims on behalf of investors of Avid Bioservices, Inc. ("Avid" or the "Company") (NASDAQ:CDMO). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether Avid and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On March 12, 2024, Avid announced the need to restate its financial performance over several quarters in 2022 and 2023. The Company blamed the misreporting on its misclassification of certain notes as long term liabilities and its failures to record additional interest expenses payable to note holders. The debt in question is $143.8 million of 1.250% exchangeable senior notes due 2026 ("2026 Notes") that Avid privately placed with qualified institutional investors in March 2021. The 2026 Notes bore a restrictive legend, essentially preventing purchasers from reselling them in the public marketplace unless the sale is exempt from the United States Securities and Exchange Commission's registration requirements. In addition, the indenture governing the 2026 Notes required Avid to remove the legend by March 17, 2022. Avid has continually reported the 2026 Notes on its balance sheet as long-term liabilities.
On this news, Avid's stock price fell $0.08 per share, or approximately 2%, to close at $6.25 per share on March 13, 2024, and the Company's share price has declined over 66% over the last 12 months.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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SOURCE: Pomerantz LLP
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