KIT Digital Inc.'s shares plummeted Friday after the company said it needed to restate nearly four years of results and a former CEO made a bid for the video technology company.
THE SPARK: The New York company said Wednesday that due to errors and irregularities, it will need to restate its financial statements for 2009, 2010, 2011 and part of 2012.
KIT said it would not issue its next quarterly earnings on time, cancelled its annual shareholder meeting and may consider a broad set of strategic alternatives including a possible sale of the company.
Then, former CEO Kaleil Isaza Tuzman wrote a long letter to the board of directors Friday, criticizing the current management and proposing to buyout the company for $3.75 per share.
THE BIG PICTURE: Tuzman stepped down as CEO earlier this year and remains a shareholder in the company. He used the letter to deny what he saw as an effort to pin the accounting and other issues at the company on steps taken during his tenure.
"I can no longer silently abide the company's attempt to scapegoat previous management or tolerate the recent record of deficient management and poor business execution," Tuzman said in his letter.
He said KIT Digital has made poor management decisions and has previously declined to consider other strategic options.
A representative for the company could not be reached immediately for comment.
SHARE ACTION: Shares plunged $1.31, more than 63 percent, to 76 cents by midday. Earlier, the stock touched 72 cents, the lowest level the company's shares have traded at since debuting on the Nasdaq in August 2009.