Robbins LLP: The Advisory Board Company (ABCO) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against The Advisory Board Company (NasdaqGS: ABCO) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Advisory Board securities between January 21, 2015 and February 23, 2016, for alleged violations of the Securities Exchange Act of 1934 by Advisory Board’s officers and directors. Advisory Board provides best practices research and insight, technology, consulting and management, and data-enabled services in the United States and internationally.
Advisory Board Accused of Downplaying Problems With Acquisition
According to the complaint, when Advisory Board announced its acquisition of Royall & Company (“Royall”) on December 10, 2014, Advisory Board projected that Royall would produce between $121-124 million in revenue and raised guidance to $125-130 million after the deal closed. Advisory Board subsequently publicly portrayed the Royall acquisition in a positive light and expressed confidence in Royall’s integration into the company. The complaint alleges that Advisory Board officials failed to disclose that there was severe integration problems associated with the acquisition and that Advisory Board had no basis to increase the revenue guidance for Royall. On February 23, 2016, Advisory Board announced a net loss of $101.8 million for the quarter ended December 31, 2015, attributable to an impairment charge of $95.7 million in the same quarter. On this news, Advisory Board’s stock fell 27% to close at $26.50 per share on February 24, 2016.Advisory Board Shareholders Have Legal Options
Advisory Board Shareholders Have Legal Options