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Home>Robbins Arroyo LLP: The Advisory Board Company (ABCO) Misled Shareholders According to a Recently Filed Class Action

Robbins Arroyo LLP: The Advisory Board Company (ABCO) Misled Shareholders According to a Recently Filed Class Action

Robbins Arroyo LLP: The Advisory Board Company (ABCO) Misled Shareholders According to a Recently Filed Class Action

09/26/2017

Robbins Arroyo LLP: The Advisory Board Company (ABCO) Misled Shareholders According to a Recently Filed Class Action

Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against The Advisory Board Company (NYSE: ABCO) in the U.S. District Court for the District of Columbia. The complaint is brought on behalf of all purchasers of Advisory Board securities between January 21, 2015 – February 23, 2016, for alleged violations of the Securities Exchange Act of 1934 by Advisory Board's officers and directors. The Advisory Board Company 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/Advisory Board-group-inc-september-2017

Advisory Board Accused Misrepresenting Success of Royall Integration

According to the complaint, on December 10, 2014 Advisory Board announced that it had signed a definitive agreement to acquire Royall & Company. According to Company officials the acquisition provided a "fantastic platform for growth, expansion and member value creation." On January 9, 2015 the acquisition was completed. With the acquisition complete officials were exceedingly positive, touting how the integration was "going very well" and was moving "more quickly than…planned." However, Advisory Board concealed the fact that the integration of Royall had serious problems and the Royall's CEO and CFO left the Company shortly after the acquisition. During this time Michael Kirshbaum, Chief Financial Officer (CFO) and Treasurer, sold 31,500 shares of Advisory Board common stock, worth over $1.7 million. Finally, on February 3, 2016 Advisory Board issued a press released disclosing the financial impact of the poorly integrated Royall acquisition. In the announcement officials revealed a net loss of $101.8 million for the quarter ended December 21, 2015, and a goodwill impairment charge of $95.7 million. They also disclosed that Royall ended 2015 with only 5% revenue growth, well below the previous guidance that it would experience double digit growth. On this news, Advisory Board's stock fell approximately 27% to close at $26.50 per share on February 4, 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.

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