Video Tech Co. Faces Derivative Suit Over Accounting Methods

Law360, New York (December 7, 2012, 2:25 PM EST) -- A shareholder of KIT Digital Inc. launched a derivative action in New York state court accusing the video software and services company and its executives of making false statements to investors about its success in integrating approximately 19 technology acquisitions.

The lawsuit comes after a “litany of false and/or misleading statements” that KIT allegedly made between November 2011 and May about the true costs of its acquisitions. The complaint also alleges KIT failed to disclose that it lacked the financial personnel necessary to ensure appropriate accounting...
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