Avid Hit With Derivative Suit Over Accounting Irregularities

Law360, New York (June 27, 2013, 5:42 PM EDT) -- A shareholder in the video editing company Avid Technology Inc. hit the company's executives with a derivative suit in Massachusetts federal court on Wednesday, claiming that fallout from the company’s allegedly improper accounting techniques has wiped just over $600 million off Avid’s market capitalization.

Shareholder Nick Di Vincenzo claims that Avid’s officers and directors failed to ensure that the company had adequate controls in place to verify that the company’s financial statements were accurate and in accordance with generally accepted accounting principles.

“Since at least 2010,...
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