Key Takeaways:
NEW YORK – Bleichmar Fonti & Auld LLP announced an investigation into Tennant Company (NYSE: TNC) for possible federal securities law violations after the firm’s botched new software rollout caused its stock to plummet more than 23 percent in a single day.
The securities law firm is examining whether Tennant made false and misleading statements to investors about the implementation of a new company-wide enterprise resource planning (ERP) system. "If you invested in Tennant, you may have legal options and are encouraged to submit your information to the firm," said Adam McCall of BFA Law in a statement.
On February 24, 2026, Tennant disclosed that the North American launch of its ERP system led to severe operational failures, including an inability to process and ship customer orders. The news caused Tennant’s stock to fall $19.28 per share, closing at $63.02. The company lost approximately $30 million in sales and now expects to spend over $20 million in 2026 on remediation, up from a planned $5 million.
The investigation follows a period where Tennant had assured investors the ERP project was “on time and on budget” and that an earlier launch in its Asia-Pacific region had been “successful.” The sharp stock decline and mounting costs have put the company's previous statements under scrutiny, raising questions about internal controls and transparency.
The investigation by Bleichmar Fonti & Auld LLP could lead to a class-action lawsuit, which may result in further financial repercussions for Tennant. Investors will be closely watching for the outcome of the investigation and any potential litigation.
This article is for informational purposes only and does not constitute investment advice.
