NEW YORK, Sept. 21, 2022 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Avaya Holdings Corp. (“Avaya” or the “Company”) (NYSE: AVYA). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.

The investigation concerns whether Avaya and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

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On June 27, 2022, Avaya announced $600 million in aggregate financing commitments, including $350 million of new Senior Secured Term Loans and $250 million of Exchangeable Senior Secured Notes. The Company’s management claimed that “[t]his 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 Q3 2022 financial results that included expected revenues and adjusted EBITDA well below previously given guidance and an unquantified but “significant” impairment charge. In addition, Avaya withdrew its 2022 guidance. 

On 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 that: (1) it determined there was substantial doubt 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 commenced internal investigations into circumstances surrounding the Company’s financial results for the quarter; and (4) the Audit Committee also commenced an investigation into matters raised by a whistleblower. 

On 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.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, 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 numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com

CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980