SAN DIEGO & WASHINGTON--(BUSINESS WIRE)-- Please replace the release dated September 25, 2017, with the following corrected version due to multiple revisions.
The corrected release reads:
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). 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. 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." Post-acquisition, 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 that Royall's Chief Executive Officer and Chief Financial Officer left the company shortly after the acquisition. Before Royall's integration issues were disclosed to the public, Michael Kirshbaum, Advisory Board's Chief Financial Officer and Treasurer, sold 31,500 shares of Advisory Board common stock, worth over $1.7 million. Finally, on February 23, 2016, Advisory Board issued a press release 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.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170925006370/en/
Source: Robbins Arroyo LLP