About the Investigation
On June 27, 2022, Avaya issued a press release announcing that the Company priced $350 million in aggregate principal amount of new Senior Secured Term Loans ("Incremental Loans") and entered into agreements for the private placement of $250 million in aggregate principal amount of Exchangeable Senior Secured Notes ("Exchangeable Notes") (CUSIP: 053499AN9). The Company stated that "[t]his funding supports and accelerates our business model transformation and addresses our convertible notes maturing in June of next year."

On July 14, 2022, Avaya filed a Form 8-K with the U.S. Securities and Exchange Commission ("SEC") stating "Avaya used a portion of the proceeds from the Incremental Loans to repurchase approximately $129 million principal amount of Avaya's 2.25% Convertible Senior Notes due 2023 (the 'Convertible Notes') [CUSIP: 05351XAB7]." Following such repurchase, "an aggregate of approximately $221 million principal amount of the Convertible Notes [remained] outstanding."

In addition to the Exchangeable Notes and Convertible Notes, the Company reported in a Form 10-Q filed with the SEC that it had $1 billion in principal amount outstanding of 6.125% Senior Notes due 2028 ("6.125% Senior Notes") (CUSIP: 053499AL3) as of March 31, 2022.

On July 28, 2022, after the market close, Avaya announced in a press release that its Chief Executive Officer would be "removed" from his position and was resigning from the Board of Directors. The Company also announced preliminary results for the quarter ended June 30, 2022 with expected revenues and adjusted EBITDA below previously-given guidance and expected, but unquantified, "significant non-cash impairment charges." The Company also withdrew its prior financial guidance. On this news, Avaya common shares were down $1.191 per share (or approximately 57%) to close at $0.899 per share on July 29, 2022, on heavy volume.

On August 9, 2022, before the market open, Avaya disclosed in a press release, among other things, that "the Company has determined that there is substantial doubt about the Company's ability to continue as a going concern"; that the "Audit Committee of the Company's Board of Directors has commenced an internal investigation to review the circumstances surrounding the Company's financial results for the quarter ended June 30, 2022"; that "Audit Committee has also commenced an internal investigation to review matters related to a whistleblower letter"; and that the "Audit Committee has engaged outside counsel to assist in the investigations and has notified the [SEC] and the Company's external auditor, PricewaterhouseCoopers LLP, of its investigations." On this news, Avaya's stock price fell from $0.51 per share (or approximately 46%) to close at $0.61 per share on August 9, 2022, on heavy volume.

On August 16, 2022, Bloomberg reported that Avaya's 6.125% Senior Note "trades at around 41 cents on the dollar, while its convertible notes change hands for around 20 cents, according to people with knowledge of the situation."

If you sustained losses from your transactions in Avaya securities and would like to discuss your legal rights and/or options, please provide your information here: Shareholder Contact | Berman Tabacco.

Berman Tabacco typically represents individuals and entities in class actions on a contingency fee basis, meaning we advance all attorneys' fees and expenses in the litigation. If the case is successful, the firm will ask the court to award the firm attorneys' fees and the reimbursement of expenses from any settlement fund. If we are not successful, you will not be responsible for the reimbursement of attorneys' fees or expenses.

This notice may constitute attorney advertising.

Contact:
Berman Tabacco
Jay Eng, Esq.
One Liberty Square
Boston, Massachusetts
(800) 516-9926
Email: law@bermantabacco.com

The issuer is solely responsible for the content of this announcement.

About Berman Tabacco

Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.