San Diego, CA -- (SBWIRE) -- 04/23/2012 -- An investigation on behalf of investors in shares of KIT digital, Inc. (NASDAQ:KITD) over potential securities laws violations by certain officers and directors at KIT digital, Inc. was announced.
Investors who purchased shares of KIT digital, Inc. (NASDAQ:KITD) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of KIT digital, Inc. (NASDAQ:KITD) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements KIT digital’s business, its prospects and its operations were potentially materially false and misleading at the time they were made.
KIT digital, Inc. reported that its annual Revenue rose from $23.40million in 2008 to $214.93million in 2011, however its Net Loss increased from $18.98million in 2008 to $27.12million in 2011.
Shares of KIT digital, Inc. (NASDAQ:KITD) rose in 2010 to over $16 per share in December and reached in Janaury 2011 7, 2011 $16.40 per share. During 2011 NASDAQ:KITD shares lost value and closed 2011 at $8.45 per share.
Over the frist months in 2012 NASDAQ:KIT shares reached over $12 in February.
Then on March 23, 2012 KIT digital, Inc said that its Chief Executive Officer, Kaleil Isaza Tuzman, will step down from his role as Chief Executive Officer and that the company has accepted the resignations of four board members.
NASDAQ:KIT shares fell on March 23, 2012 to as low as $6.33.
On March 30, 2012 KIT digital, Inc. disclosed that it had a material weakness in internal control over financial reporting in the past. KIT digital, Inc said its failure to implement and maintain effective internal control over financial reporting could result in material misstatements in its financial statements which could require it to restate financial statements, cause investors to lose confidence in its reported financial information and have a negative effect on its stock price.
On Apr 16, 2012 KIT digital, Inc. (NASDAQ: KITD) announced its board of directors has also accepted the resignation of non-executive Chairman Kaleil Isaza Tuzman.
NASDAQ: KITD shares closed on April 20, 2012 at $6.99 per share.
Those who purchased shares of KIT digital, Inc. (NASDAQ:KITD), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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