Tangoe, Inc.

Tangoe, Inc., a global provider of IT expense management software and services, has been subject to several investigations and legal actions concerning its financial practices and fiduciary responsibilities to shareholders.

In March 2016, Tangoe filed a Form 8-K with the Securities and Exchange Commission indicating that the company’s financial statements for the years 2013 and 2014, as well as the first three quarters of 2015, should no longer be relied upon due to improper recognition of revenue. This led to a significant drop in Tangoe’s share price and prompted an investigation by Block & Leviton LLP into possible violations of federal securities laws and breaches of fiduciary duties to shareholders[1].

Additionally, there have been other investigations into possible breaches of fiduciary duty by Tangoe’s Board of Directors. For instance, Levi & Korsinsky, LLP launched an investigation in December 2014[2], and Andrews & Springer LLC investigated potential breaches of fiduciary duty related to the sale of the company to Marlin Equity Partners in 2017[4]. The sale process was scrutinized for potential conflicts of interest and for possibly undervaluing the company’s shares[4].

The Delaware Court of Chancery also denied a motion to dismiss breach of fiduciary duty claims against Tangoe’s Board of Directors, finding that the stockholder vote on the sale of the company was not fully informed[6]. The court’s decision highlighted issues such as the failure to disclose a quality of earnings report to stockholders and concerns raised by the SEC regarding investors’ access to financial information[6].

Despite these legal challenges, Tangoe has emphasized its commitment to maintaining the privacy and security of its customers’ information and to ethical business practices, as stated on its website[3]. The company has also taken a stance against modern slavery and human trafficking, aligning with high ethical standards in its supply chain[3].

In summary, Tangoe, Inc. has faced investigations and legal actions due to alleged financial misstatements and breaches of fiduciary duty, which have led to shareholder lawsuits and scrutiny of the company’s sale process.

Citations:

1. https://www.prnewswire.com/news-releases/tangoe-inc-investigated-for-possible-violations-of-the-federal-securities-laws-by-block–leviton-llp-300232477.html
2. https://www.prnewswire.com/news-releases/shareholder-alert-the-law-firm-of-levi–korsinsky-llp-launches-an-investigation-into-tangoe-inc-regarding-possible-breaches-of-fiduciary-duty-300005595.html
3. https://www.tangoe.com/security-compliance/
4. https://www.globenewswire.com/en/news-release/2017/05/25/996318/31124/en/TANGOE-MERGER-INVESTIGATION-ALERT-Andrews-Springer-LLC-Is-Seeking-More-Cash-for-Shareholders-of-Tangoe-Inc.html
5. https://www.businesswire.com/news/home/20170518006493/en/TANGOE-INC.-SHAREHOLDER-ALERT-Rigrodsky-Long-P.A.-Announces-Investigation-Of-Buyout
6. https://www.natlawreview.com/article/chancery-court-denies-dismissal-breach-fiduciary-duty-claims-after-concluding
7. https://www.doj.nh.gov/consumer/security-breaches/t.htm
8. https://www.businesswire.com/news/home/20170523006346/en/INVESTOR-ALERT-Brower-Piven-Commences-an-Investigation-into-the-Proposed-Sale-of-Tangoe-Inc.-and-Encourages-Shareholders-to-Contact-the-Firm-for-Additional-Information