Robbins Arroyo LLP: Tangoe, Inc. (TNGO) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Tangoe, Inc. (NASDAQGS: TNGO) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of Tangoe securities between March 18, 2014 and March 7, 2016, for alleged violations of the Securities Exchange Act of 1934 by Tangoe’s officers and directors. Tangoe provides connection lifecycle management software and related services to enterprises and service providers worldwide.
Tangoe Accused of Overstating Its Financial Results
According to the complaint, during the class period, Tangoe submitted several filings with the U.S. Securities and Exchange Commission (“SEC”) attesting to the accuracy of the financial statements, effectiveness of internal controls, and that all fraud was disclosed. The complaint alleges that Tangoe officials failed to disclose that the company’s financial results were overstated and that there were errors in recognizing revenue.
On March 7, 2016, Tangoe announced that it will restate its financial statements for the years 2013 and 2014, all quarters therein, and the first three quarters of 2015. Tangoe further revealed that it would not be able to timely file its annual report with the SEC as scheduled on March 15, 2016. Tangoe detailed that it made errors in recognizing revenue, estimating that at least $17.1 million of previously recognized revenue will be affected, against total revenue under review of approximately $70 million and previously reported total revenue of $565.9 million. On this news, Tangoe stock fell $0.70 per share, or over 9%, to close at $7.75 per share on March 8, 2016.
Tangoe Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.