Robbins LLP: Tech Data Corporation (TECD) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Tech Data Corporation (NasdaqGS: TECD). The complaint is brought on behalf of all purchasers of Tech Data securities between June 1, 2017 and August 31, 2017, for alleged violations of the Securities Exchange Act of 1934 by Tech Data’s officers and directors. Tech Data engages in the wholesale distribution of technology products.
Tech Data Accused of Misrepresenting Success of Technology Solutions Acquisition
According to the complaint, on February 27, 2017, Tech Data acquired the Technology Solutions business (“TS”) from Avnet, Inc. Tech Data officials then unjustifiably reported positive financial results in the company’s public filings over a period of several months. Tech Data’s Chief Executive Officer attributed the company’s success to its regional teams’ capitalization on market opportunities, which allowed them to surpass their profitability goals. Tech Data also referred to its acquisition of the TS business as “the largest and most transformative acquisition in our company’s history.” Tech Data continued to report excellent financial results until August 31, 2017, when the company revealed that it did not deliver the earnings it expected in the second fiscal quarter and admitted that it had experienced operational and execution issues related to the acquisition. On this news, Tech Data’s stock plummeted by $22.83 per share, or over 20%, to close at $87.46 per share on September 1, 2017.
Tech Data Shareholders Have Legal Options
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