According to the law firm press release, Tangoe develops and markets computer software to help companies manage and control their fixed and mobile communications assets and costs.
The Complaint alleges that throughout the Class Period, Defendants orchestrated a scheme to inflate their share price through a series of acquisitions, and made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was overstating organic growth by underreporting the percentage of revenue derived from recent acquisitions; (ii) the Company was not growing customers organically as its deferred implementation fees failed to grow; and (iii) as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times.
On August 28, 2012, a report was published by thestreetsweeper.org that described the Company as having a “risky acquisition-driven growth strategy.” On this news, Tangoe shares declined $3.39 per share, or nearly 17%, to close at $16.70 per share on August 28, 2012.
On September 6, 2012, Copperfield Research published a report concluding that the Company had materially misrepresented its organic growth rate. On this news, Tangoe shares declined $1.03 per share, or 6% on September 6, 2012. The stock continued to decline an additional $1.68 per share or 10.5%, to close at $14.29 per share on September 7, 2012.
On April 3, 2013, the Court issued an Order consolidating cases. Case number 13-cv-364 shall be consolidated into this case, as the two cases are based on the same facts and contain the same allegations. This case, docket number 13-cv-286, shall be the lead case. On April 26, the court issued another Order consolidating cases. Case number 13-cv-517 shall be consolidated into this case, as the two cases are based on the same facts and contain the same allegations. This case, docket number 13-cv-286, shall be the lead case.