NEW YORK, NY / ACCESSWIRE / August 11, 2017 / Pomerantz LLP is investigating claims on behalf of investors of The Advisory Board Company ('Advisory Board' or the 'Company') (NASDAQ: ABCO). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Advisory Board and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On December 10, 2014, Advisory Board announced that it had signed a definitive agreement to acquire Royall & Company ('Royall'). The Company completed the acquisition of Royall on January 9, 2015. On February 23, 2016, Advisory Board 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.' Royall produced only $118 million in revenue in 2015, compared to the Company's guidance of $125 million to $130 million.
Following this news, the Company's share price fell $9.79, or 26.98%, to close at $26.50 on February 24, 2016.
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SOURCE: Pomerantz LLP