Kae Zulager

Well our competitors are again making a good name for everyone in the Expense Management space — so much so that you still have a chance to get in on the Class Action Lawsuits pending against Tangoe.

WHAT HAPPENED?

Recently, Tangoe was Delisted from Nasdaq for inadequate reporting.  As AOTMP writes “Tangoe had revenue classification issues and then was delisted from the NASDAQ in March because it could not meet reporting requirements. This created much speculation with Tangoe clients as to the financial health of the company.”

 

As previously announced, the Delayed Reporting was due to Tangoe’s continued restatement of financial reports for 2013 and 2014, most of 2015.  (See the Notification of Late Filing on Form 12b-25 filed by the Company on August 10, 2016).

 

THEN WHAT HAPPENED?

So to the rescue is Marlin Equity Partners who acquired Tangoe with an offer worth $242.6 million. The merger allowed Tangoe shareholders only $6.50 per share in cash in exchange for each share of Tangoe.

 

Marlin Partners has combined Tangoe with its existing portfolio company Asentinel.  “It’s not a deal that is taking place in the most positive of circumstances” says AOMTP. “Considering the background to this deal, many may see this action as a “rescue” with Marlin and Tangoe management hoping [this] may act as a sort of life raft, rather than this being some carefully planned, strategic solution to save the ship and all aboard.”

 

Enterprises using Tangoe should likely not expect any fast resolution on the many challenges faced and displeasure experienced with Tangoe as it has grown through acquisitions and seen inherent integration issues.

 

THE AFTERMATH

The offer from Marlin is contentious because Tangoe had previous other offers ranging up to $8 before the most recent delisting and reportings.  Investors are not happy and are filing Class Action Lawsuits.

 

The suits contend that throughout the Class Period Tangoe issued false and misleading information and or/failed to disclose that: (1) defendants made errors in recognizing Tangoe’s revenue; (2) Tangoe’s financial results were overstated; and (3) as a result, statements about Tangoe’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damage.  Ouch.

 

HMMM… WHERE TO GO FOR HELP

There is little question that Tangoe and Asentinel customers will have some interesting times ahead in paying for services and perhaps not receiving appropriate fair benefits for the fees (in addition to all the confusion of merging systems and personnel).

 

Bill Police stands ready to support and assist any customers who suddenly feel the need to jump a questionably ethical ship to join the good guys trying to make a positive reputation for themselves and the Expense Management Industry.

 

Come check us out because we are…..

…..Always Protecting Your Wireless Rights:  Right Plan.  Right Price.  Right Result.