| Company: | Avaya, Inc. |
| Ticker Symbol: | NYSE: AV |
| Class Period: | October 5, 2004 to April 19, 2005 |
| Date Filed: | Apr-29-05 |
| Lead Plaintiff Deadline: | Jun-28-05 |
| Court: | District, NJ |
| Allegations: |
A securities class action has been commenced in the United States District Court for the District of New Jersey on behalf of purchasers of Avaya, Inc. ("Avaya") (NYSE:AV) common stock during the period between October 5, 2004 and April 19, 2005 (the "Class Period").
The complaint charges Avaya and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Avaya provides communication systems, applications and services for enterprises, including businesses, government agencies and other organizations.
The complaint alleges that during the Class Period defendants made materially false and misleading statements regarding the Company's business and prospects. Specifically, the complaint alleges that defendants failed to disclose and/or misrepresented the following adverse facts, which were known to defendants, or recklessly disregarded by them, at all relevant times: (a) the cost of the integration of Tenovis, a company Avaya had acquired at the start of the Class Period, was much greater than represented and rather than being "accretive" to fiscal 2005 earnings or having a positive financial impact within a short period of time, the acquisition would, in fact, reduce Avaya's earnings by at least $.06 per share during fiscal 2005; (b) Avaya's changes in its delivery methods of products to market was creating severe disruptions in sales; (c) Avaya was experiencing a dramatic reduction of demand in its U.S. market; and (d) based on the foregoing, Avaya had no reasonable basis to project an increase in profits or an increase in revenues of 25-27% for fiscal 2005.
On April 19, 2005, Avaya released its financial and operational results for the second quarter of fiscal 2005 and reported revenues and earnings far short of previous guidance and analyst expectations of earnings of $0.17 a share on revenue of $1.29 billion. The investing public's reaction was swift and negative. One analyst at J.P. Morgan called the results "horrid" and cut its rating on the stock to "neutral" from "overweight." The stock fell more than 25% on April 20, 2005, the single biggest loser on the NYSE, on extremely heavy trading volume.
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.
The complaint charges Avaya and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Avaya provides communication systems, applications and services for enterprises, including businesses, government agencies and other organizations.
The complaint alleges that during the Class Period defendants made materially false and misleading statements regarding the Company's business and prospects. Specifically, the complaint alleges that defendants failed to disclose and/or misrepresented the following adverse facts, which were known to defendants, or recklessly disregarded by them, at all relevant times: (a) the cost of the integration of Tenovis, a company Avaya had acquired at the start of the Class Period, was much greater than represented and rather than being "accretive" to fiscal 2005 earnings or having a positive financial impact within a short period of time, the acquisition would, in fact, reduce Avaya's earnings by at least $.06 per share during fiscal 2005; (b) Avaya's changes in its delivery methods of products to market was creating severe disruptions in sales; (c) Avaya was experiencing a dramatic reduction of demand in its U.S. market; and (d) based on the foregoing, Avaya had no reasonable basis to project an increase in profits or an increase in revenues of 25-27% for fiscal 2005.
On April 19, 2005, Avaya released its financial and operational results for the second quarter of fiscal 2005 and reported revenues and earnings far short of previous guidance and analyst expectations of earnings of $0.17 a share on revenue of $1.29 billion. The investing public's reaction was swift and negative. One analyst at J.P. Morgan called the results "horrid" and cut its rating on the stock to "neutral" from "overweight." The stock fell more than 25% on April 20, 2005, the single biggest loser on the NYSE, on extremely heavy trading volume.
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.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
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