NEW YORK, Jan. 06, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announce that a securities class action lawsuit has been filed in the U.S. District Court for the Middle District of North Carolina on behalf of all persons or entities that purchased the securities of Avaya Holdings Corp. (“Avaya” or the “Company”) AVYA between November 22, 2021 and November 29, 2022, both dates inclusive (the “Class Period”).

The lawsuit alleges that the defendants failed to disclose the following: (1) the company’s internal control over financial reporting (“ICFR”) was deficient in several areas; (2) as a result of these deficiencies, the company had failed to develop and maintain effective controls over its whistleblower policy and ethics and compliance program; and (3) the company’s deteriorating financial condition would likely cast significant doubt on its ability to continue as a going concern.

On July 28, 2022, the company announced the termination of its CEO, James M. Chirico, Jr. The company also announced preliminary financial results for the third quarter of 2022, which included expected sales and adjusted earnings before interest, taxes, depreciation and amortization well under previously provided guidance and an unquantified but “significant” impairment. Avaya also withdrew its 2022 guidance. As a result of this news, Avaya’s share price fell by more than 56%.

On August 9, 2022, the company announced the following: (1) Avaya determined that it had serious doubts about its ability to continue as a going concern; (2) Avaya would fail to file its financial statements for the quarter ended June 30, 2022 in a timely manner; (3) Avaya’s Audit Committee has initiated an internal investigation into the circumstances surrounding Avaya’s financial results for the quarter; and (4) the Audit Committee also initiated an investigation into matters reported by a whistleblower. As a result of this news, Avaya’s share price fell by more than 45%.

On November 30, 2022, the company announced that “control deficiencies that management had…