NEW YORK--(BUSINESS WIRE)--The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of The Advisory Board Company (NASDAQ:ABCO) who purchased shares between January 21, 2015 and February 23, 2016. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements and/or failed to disclose that (1) there were severe integration problems associated with Advisory Board's acquisition of Royall & Company; and (2) as a consequence, defendants had no basis to increase the revenue guidance for Royall during the Class Period. On January 9, 2015, Advisory Board completed its acquisition of Royall & Company. Then on February 23, 2016, Advisory Board announced a net loss of $101.8 million for the quarter ended December 31, 2015, primarily attributable to an impairment charge of $95.7 million (and later increased to $99.1 million) to Royall’s goodwill. Following this news, shares of Advisory Board fell 27% to close at $26.50 per share on February 24, 2016.
Shareholders have until October 2, 2017 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
If you suffered a loss during the class period and wish to obtain additional information, please contact Joseph Klein, Esq. by telephone at 212-616-4899 or visit http://www.kleinstocklaw.com/pslra-sb/the-advisory-board-company?wire=2.
Joseph Klein, Esq. is an experienced attorney and has also practiced as a Certified Public Accountant. Mr. Klein represents investors and participates in securities litigations involving financial fraud throughout the nation. Attorney advertising. Prior results do not guarantee similar outcomes.