Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Avaya To Contact Him Directly To Discuss Their Options
New York, New York--(Newsfile Corp. - December 30, 2022) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Avaya Holdings Corp. ("Avaya" or the "Company") (NYSE: AVYA).
If you suffered losses exceeding $50,000 investing in Avaya stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/AVYA.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
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. Management claimed "[t]his funding supports and accelerates our business model transformation."
A month later, on July 28, 2022, Avaya announced its board fired CEO James M. Chirico, Jr. The company also announced disastrous 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, the company withdrew its 2022 guidance. This news sent the price of Avaya shares crashing 57% lower the next day.
On August 9, 2022, Avaya released its preliminary third quarter 2022 financial results, reporting sales of $577 million, down 20% year-over-year in constant currency. The Company provided no explanation for the earnings miss, but disclosed that there is "substantial doubt about the Company's ability to continue as a going concern." The Company also announced that its audit committee is investigating a whistleblower letter and its recent earnings report. As an article by The Wall Street Journal pointed out, Avaya missed earnings and cut its earnings forecast by 60% just weeks after borrowing $600 million from institutional investors in June.
On this news, Avaya's stock price fell $0.51, or 45.5%, to close at $0.61 per share on August 9, 2022, thereby injuring investors.
Then, on December 13, 2022, Avaya filed a Form 8-K with the SEC stating that it was engaging in discussions for a potential refinancing, recapitalization, reorganization, restructuring, or investment transaction.
On this news, Avaya's stock price fell $0.469, or 40.4%, to close at $0.691 per share on December 13, 2022, thereby injuring investors further.
Then, on December 16, 2022, The Wall Street Journal exclusively reported that Avaya "is nearing a chapter 11 bankruptcy filing," citing people familiar with the matter.
On this news, Avaya's stock price fell $0.28, or 54.1%, to close at $0.24 per share on December 16, 2022, thereby injuring investors further.
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