Avaya Board Accused of ‘Massive Fraud’ in Suit by Bondholders

Avaya Holdings Corp.’s board misled investors about the company’s finances and management as part of a “massive fraud,” according to a lawsuit filed in New York state court by bondholders who claim they lost more than $125 million.

The investors, who sued Feb. 1, said they hold unsecured convertible notes issued by the telecommunications software company in 2018 that have a face value of more than $100 million. The notes are due this year. The plaintiffs include funds associated with Angelo Gordon & Co., Canyon Partners LLC and Mariner Investment Group.

Avaya in May sought to raise ...