SAN DIEGO & WASHINGTON--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo 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.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/the-advisory-board-company
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
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.