San Diego – (Businesswire): Haeggquist & Eck, LLP a shareholder rights litigation firm, announces an investigation of potential corporate misconduct at The Advisory Board Company (the “Advisory Board” or the “Company”) (NASDAQ: ABCO), a provider of software and solutions to the education and healthcare industries. The inquiry includes an analysis of the integration and financial condition of the Company in relation to its 2015 acquisition of Royall & Company.
On February 23, 2016, the Company announced a net loss of $101.8 million for the quarter ended December 31, 2015, compared to a net loss of $5.4 million for the quarter ended December 31, 2014. The increase was primarily attributable to an impairment charge of $95.7 million (later increased to $99.1 million) to Royall’s goodwill. Advisory Board common stock fell approximately 27% after this news, falling from $36.29 per share on February 23, 2016, to close at $26.50 per share the next day.
A class action has been filed against the Company and certain of its executives for alleged violations of the federal securities laws on behalf of persons who acquired the Company’s common stock during the period between January 21, 2015 and February 23, 2016 (the proposed “Class Period”). The class action includes allegations that the defendants made materially false statements or omissions concerning Advisory Board’s business and operations, including statements regarding the integration of Royall.
An October 2, 2017 deadline has been reported for the filing of lead plaintiff motions in the class action.
Advisory Board Shareholders Have Legal Options
Concerned Advisory Board shareholders who would like more information about their rights and potential remedies, including remedies to the Company from the alleged misconduct of its executives and/or directors, may contact attorneys Amber Eck or Kathleen Herkenhoff at 619-342-8000, email@example.com or firstname.lastname@example.org.
Haeggquist & Eck, LLP is a nationally recognized leader in shareholder rights law. The firm represents individual investors in shareholder derivative lawsuits, and members of the firm have helped shareholders recover more than $1 billion of value for themselves and the companies in which they have invested.
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