KIT digital, Inc KITD Securities Stock Fraud

Company:	KIT digital, Inc
Ticker Symbol:	KITD
Class Period:	Nov-8-11 to May-3-12
Date Filed:	May-29-12
Lead Plaintiff Deadline:	Jul-28-12
Court:	Southern District of New York
Allegations:

New York, NY: A securities class action has been commenced in the United States District Court for the Southern District of New York on behalf of a class of purchasers of KIT digital, Inc. ("KIT digital" or the "Company") securities between November 8, 2011 and May 3, 2012 (the "Class Period").

KIT digital and certain of its senior executives are charged with issuing a series of materially false and misleading statements, during the Class Period, in violation of federal securities laws.

During the class period, KIT digital was engaged in acquiring and purportedly integrating companies that were in the business of marketing end-to-end technology platforms for IP based video content providers. Under the leadership of Chairman and Chief Executive Officer Kaliel Tuzman, from May 2008 to May 2011, KIT digital acquired over a dozen other companies, using cash raised through equity sales and stock as acquisition currency. As a result of its purported success, KIT digital reported "record" setting financial results, and repeatedly upgraded its financial guidance, throughout the Class Period.

The action charges that, on May 3, 2012, investors ultimately learned that KIT digital was operating far below guidance, that the success of the integration and administration of its purchased assets had been overstated, and that the true costs of integrating and administering these acquisitions was understated.

Based on the disparity between prior guidance and KIT digital's announced results for 1Q:12, on May 3, 2012, its shares declined precipitously - falling to an intra-day low of $4.12 per share, compared to the prior day's close of $6.34 per share, on May 2, 2012.

It was only at that time that investors first learned that: (i) KIT digital was not achieving its projected growth in earnings and revenues; (ii) the effectiveness of the integration of purchased companies had been materially overstated; (iii) KIT digital had materially overstated its foreseeable growth and profitability, and had falsely stated that the Company was poised to achieve significant financial success; and (iv) it was not true that KIT digital contained adequate systems of controls, such that KIT digital's representations and reports were true, accurate and reliable.

On May 3, 2012, the Wall Street Journal published a critical report on KIT digital that concluded that Kaliel Tuzman, the former CEO and board Chairman who unexpectedly resigned in April 2012, had "left a mess" at the Company. The Journal also reported that KIT digital's new CEO would not endorse prior guidance.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

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Published on May-29-12