Nov. 30, 2012 (Shareholders Foundation) -- An investor in shares of KIT digital, Inc. (NASDAQ:KITD) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged securities laws violations by KIT digital, Inc. in connection with certain allegedly false and misleading statements.
According to the complaint the plaintiff alleges on behalf of on behalf of investors who purchased or otherwise acquired common stock of KIT digital, Inc. (NASDAQ:KITD) during the period May 19, 2009 through November 21, 2012, that KIT digital, Inc. and certain of its current and former officers violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The plaintiff claims that the defendants allegedly issued false and misleading statements and omissions regarding the Company's internal financial controls and its accounting for revenue primarily relating to certain perpetual software license agreements.
NASDAQ: KITD shares declined from over $12 per share in early 2012 to as low as slightly above $2 per share in mid-November.
on Nov. 21, 2012, after the market closed, KIT digital announced the Restatement of prior period Financial Statements and announced the postponement of its third quarter 2012 results.

Shares of KIT digital, Inc. (NASDAQ:KITD) dropped from $2.07 per share on Nov. 21, 2012, to as low as $0.585 on Monday, Nov. 26, 2012.