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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of May 26, 2020 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLD
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
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May 6, 2020 - The court granted final approval of the settlement.
January 6, 2020 - The court preliminarily approved the settlement.
December 6, 2019 - A stipulation of settlement was filed by the parties.
March 29, 2019 - The court granted in part and denied in part the defendants' motion to dismiss.
March 9, 2018 - A motion to dismiss the amended complaint was filed.
January 8, 2018 - An amended complaint was filed.
August 3, 2017 (Shareholders Foundation) - An investor in shares of The Advisory Board Company (NASDAQ:ABCO) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by The Advisory Board Company in connection with certain allegedly false and misleading statements made between January 21, 2015 and February 23, 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of The Advisory Board Company (NASDAQ:ABCO) common shares between January 21, 2015 and February 23, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between January 21, 2015 and February 23, 2016, the defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Advisory Board’s business and operations, including that there were severe integration problems associated with Advisory Board’s acquisition of Royall and, as a consequence of these integration problems, defendants had no basis to increase the revenue guidance for Royall between January 21, 2015 and February 23, 2016.
Washington, DC based the Advisory Board Company is a provider of software and solutions to the healthcare and higher education industries.
The Advisory Board Company reported that its annual Total Revenue rose from $768.35 million in 2015 to $803.42 million in 2016 and that its Net Loss of $119.01 million in 2015 turned into a Net Income of $91.24 million in 2016.
On February 23, 2016, The Advisory Board Company disclosed the extent of the problems with Royall. On that date, The Advisory Board 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.
According to the Company, the increase in net loss was primarily attributable to an impairment charge of $95.7 million (subsequently increased to $99.1 million) to Royall’s goodwill, due to Royall’s “first year performance being below the expectations we had set as of the acquisition date.” Indeed, Royall produced only $118 million in revenue in 2015, compared to defendants’ guidance of $125 million to $130 million.
Shares of The Advisory Board Company (NASDAQ:ABCO) declined to $28.59 per share in March 2016.
On August 3, 2017, NASDAQ:ABCO shares closed at $55.15 per share.