Tennant Company Investors Notified of Rights in Securities Fraud Probe

Stock plummeted 23% after issues with company's new ERP system rollout

Mar. 24, 2026 at 10:52am

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Leading securities law firm Bleichmar Fonti & Auld LLP has announced an investigation into Tennant Company (NYSE:TNC) for potential violations of federal securities laws. The investigation focuses on Tennant's implementation and rollout of a new company-wide enterprise resource planning (ERP) system, which allegedly caused severe operational disruptions and a 23.4% drop in the company's stock price on February 24, 2026.

Why it matters

Tennant's ERP system rollout issues raise concerns about the company's transparency and disclosures to investors. The significant stock price drop could indicate potential securities fraud, which would have major implications for Tennant shareholders who may have legal options to recoup losses.

The details

According to the investigation, Tennant, a manufacturer of industrial cleaning equipment, assured investors that the ERP system implementation was "progressing as we've anticipated," "on time and on budget," and that the launch in its Asia-Pacific region had been "successful." However, on February 24, 2026, Tennant revealed that the rollout of the new ERP system in North America caused severe operational disruptions, including an inability to process and ship customer orders. This resulted in Tennant losing roughly $30 million in sales and needing to spend more than $20 million in 2026 to remediate the issues, compared to the roughly $5 million the company had planned to spend.

  • On February 24, 2026, Tennant's stock price dropped 23.4% from the previous day's closing price.
  • Tennant revealed the operational disruptions and increased remediation costs related to the ERP system rollout on February 24, 2026.

The players

Tennant Company

A manufacturer of industrial cleaning equipment, including large mechanical floor scrubbers and sweepers used in warehouses, retail stores, and other commercial facilities.

Bleichmar Fonti & Auld LLP

A leading international law firm representing plaintiffs in securities class actions and shareholder litigation.

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What’s next

The judge in the case will decide on Tuesday whether or not to allow the class action lawsuit to proceed.

The takeaway

This investigation highlights the importance of transparency and accurate disclosures from public companies, especially when implementing major operational changes like a new ERP system. Tennant's alleged misrepresentations could have significant consequences for shareholders who may have legal recourse to recover their losses.