CDMO - Avid Bioservices (CDMO) Quantifies Wrongful Accounting Due to Misclassification of $146 Million of 2026 Notes as Long-Term Liabilities – Hagens Berman | Benzinga
SAN FRANCISCO, April 25, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Avid Bioservices, Inc. (NASDAQ:CDMO) investors who suffered substantial losses to submit your losses now.
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Avid Bioservices, Inc. (CDMO) Investigation:
Avid Bioservices, Inc. (CDMO) finds itself embroiled in an investigation into possible securities law violations after the company restated its financial performance for multiple quarters spanning 2022 and 2023.
After the markets closed on Apr. 24, 2024, Avid filed restated financials for its fiscal year ended Apr. 30, 2023. In so doing, Avid admitted that it understated current liabilities by about 141% and overstated net income by about 116%.
The heart of the matter lies in the misclassification of certain notes as long-term liabilities. Avid's failure to accurately record additional interest expenses payable to note holders has raised serious questions about the company's financial reporting practices. The spotlight is now on $143.8 million of 1.250% exchangeable senior notes due in 2026, known as the "2026 Notes." These notes were privately placed with qualified institutional investors back in Mar. 2021.
The 2026 Notes come with a restrictive ...
CDMO) Quantifies Wrongful Accounting Due to Misclassification of $146 Million of 2026 Notes as Long-Term Liabilities – Hagens Berman>Full story available on Benzinga.com