NEW YORK, May 16, 2024 /PRNewswire/ — 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 [email protected] 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.
Then, on April 24, 2024, Avid filed an amendment to its annual report for the year ending April 30, 2023, acknowledging that it had understated current liabilities by approximately 141% and overstated its net income by approximately 116%.
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CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
SOURCE Pomerantz LLP