AVID Inc. Under Financial Investigation

Shareprice down, website back online   27-Feb-13

AVID Inc. Under Financial Investigation

Breaking news this morning, already spotted by the excellent Pro-tools-expert.com - Avid appear to be under scrutiny by multiple high powered law firms amid allegations of:

"potential violations of federal securities laws and breaches of fiduciary duty by Avid and certain of its officers and directors."

Additionally in the Yahoo Finance report of investigations by  law firm Newman Ferrara readers are encouraged to contact the firm:

"Whistleblowers: Persons with knowledge that may aid in the investigation of this matter are encouraged to contact the firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers are protected from employer retaliation and may be entitled to as much as 30 percent of the recovery if the information provided leads to a successful action."

No more details are available at this time and the Avid website appears to be offline (now back online) - though this may be purely due to the high volume of traffic as people flock to see whats up.

Over recent years Avid has undergone major restructuring, with cutting of both employees and selling off various assets to focus on the pro market with Pro Tools, live sound and video editing systems. Indeed recently M-Audio was purchased by InMusic - joining Akai, Numark and Alesis.

It is not clear what the ramifications of this action are likely to be, though of course this is an investigation, no impropriety has been proven. But earlier this month CEO Gary Greenfieldstepped down and was replaced by Louis Hernandez. Though no doubt people with significant investment in ProTools systems will be feeling a little uncertain about the future of their platform.


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8 Comments... Comments are closed while we transition to Disqus

hiltonius    Said...

the website is up

27-Feb-13 06:20 AM

KiwiSteve    Said...

And Sibelius users will be worried .. They were concerned when the London Sibelius office was closed and this will add to their concerns.

27-Feb-13 06:58 AM

derek    Said...

Apparently the core team of Sibelius is safe, which should comfort Gaz a little: http://createdigitalmusic.com/2013/02/sibelius-core-team-now-at-steinberg-building-new-notation-tool/

I can't help but wonder if everyone at the M-Audio offices are snickering after being spun off. :-)

And just in case Nick is reading this to gather show notes, a few people have posted Waldorf Rocket beta videos on YouTube: https://www.google.com/search?q="waldorf+rocket"+site%3Ayoutube.com

27-Feb-13 08:32 AM

Montychristo86    Said...

...and I just thought their software was over-bloated.

27-Feb-13 09:35 PM

Lagrange Audio    Said...

I don't think PT users have too much to worry about given the size of the user base out there. Those numbers are attractive enough for someone to make the management model better. Worse case is someone buys the intellectual property and runs a tighter operation

27-Feb-13 10:32 PM

funkdefno    Said...

I wish George Lucas would buy back SoundDroid...

28-Feb-13 04:15 AM

Derek Williams    Said...

Avid is not a fit and proper company to be entrusted with music software now ubiquitously used by professionals.

Their most notorious bungle was their recent sacking of the entire Sibelius development team, after years of downsizing and cost cutting, leaving the award winning team completely free to be re-employed en bloc by arch rivals Yamaha Steinberg.

Until then, Sibelius had been the world's best selling music notation application with half a million users worldwide and was running profitably. It was even more shocking to note that over the same period that the Avid share price divided by 10, from $70 around 2006, to $7 last year, the newly replaced CEO, Mr Gary Greenfield's salary was increased form $670,000 to $4.8 million.

With such stellar rewards being handed out like that for conspicuous failure, the mind boggles at what success might cost.

28-Feb-13 04:45 AM

Peter McAleer    Said...

Avid is unfit to be entrusted with either PT or Sibelius and most pro users know this. This software needs rescuing by more competent hands but I fear it is too late for Sibelius, since a new kid will soon be on the block, courtesy of Avid's blundering ineptitude.

28-Feb-13 08:50 AM

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