Case: The Advisory Board Company
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New York – September 6, 2017 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating The Advisory Board Company ("Advisory Board” or the "Company") (NASDAQ: ABCO), a company that provides performance-improvement software and services to the healthcare and education industries.  Investors who purchased shares of Advisory Board common stock may be affected.

Class action litigation has been filed in the United States District Court for the Eastern District of New York against Advisory Board and certain Company executives on behalf of purchasers of the common stock of Advisory Board between January 21, 2015 and February 23, 2016, inclusive (the “Class”), alleging violations of the Securities Exchange Act of 1934.

On January 9, 2015, prior to the start of the Class Period, the Company closed the acquisition of Royall & Company (“Royall”).  Advisory Board purchased Royall for a combination of cash and stock worth $850 million and booked $659 million of the Royall transaction to goodwill.  At the time of the acquisition, based on recent growth rates of 14-17%, the Company said it expected growth of 15-18% for Royall for 2015.

On August 4, 2015, the Company issued financial results for the quarter ended June 30, 2015 and held a conference call to discuss the Company’s quarterly results.  Investors learned that Royall’s growth was dismal and had slowed to a mid-single digit growth rate.  The defendants also disclosed the surprising departures of Royall’s CEO and CFO a number of months earlier and attributed the slow growth to the loss of Royall’s CEO and CFO who had been driving sales and departed in the height of the selling season.  Advisory Board also disclosed a timing issue with respect to Royall’s revenue recognition.  Specifically, the Company disclosed Royall’s inability to recognize revenue on certain contracts due to the earlier deadline to close its books as a public entity compared to its historical closing as a private entity.  Following the August 4, 2015 post-market disclosures, the Company’s shares declined by $12.37 per share, or nearly 21%, to close at $46.99 per share on August 5, 2015.  

Then, at the end of the Class Period on February 23, 2016, the 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 its net loss was primarily attributable to an impairment charge of $95.7 million (subsequently increased to $99.1 million) to Royall’s goodwill, reflecting that Royall’s first year performance was below Company expectations set at the time of the acquisition.   Following the February 23, 2016 post-market disclosures, shares of Advisory Board declined by $9.79 per share, or 27%, to close at $26.50 per share on February 24, 2016.

If you purchased or acquired shares of Advisory Board common stock and would like to discuss our investigation, please contact us by e-mailing This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by calling 800-290-1952.

Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail address: This e-mail address is being protected from spambots. You need JavaScript enabled to view it


Attorneys: Pamela A. Mayer