Tennant Company Faces Securities Fraud Investigation After ERP Issues

BFA Law notifies investors to act after 23% stock drop

Mar. 30, 2026 at 10:22am

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A highly detailed, photorealistic studio photograph of a polished metal sculpture in the shape of a broken gear or cog, resting on a clean, monochromatic background and dramatically lit to convey a sense of corporate strategy and risk.A broken corporate gear symbolizes the operational disruptions that can result from failed technology implementations.NYC Today

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 is related to Tennant's implementation and rollout of a new company-wide enterprise resource planning (ERP) system, which caused severe operational disruptions and a 23.4% stock drop on February 24, 2026.

Why it matters

Tennant's ERP system issues resulted in the company losing around $30 million in sales and needing to spend over $20 million in 2026 to remediate the problems, compared to the $5 million it had originally planned. This significant financial impact and the potential for securities fraud violations have prompted BFA Law to investigate on behalf of investors.

The details

BFA Law is investigating whether Tennant made false and misleading statements to investors about the progress, timeline, and budget of the ERP system implementation. Tennant had assured investors the project was 'progressing as we've anticipated,' 'on time and on budget,' and that the Asia-Pacific launch had been 'successful' with 'mitigated disruptions and stabilized operations.' However, the North American rollout caused severe operational disruptions, including Tennant's inability to process and ship customer orders.

  • On February 24, 2026, Tennant revealed the ERP system rollout in North America caused severe operational disruptions.
  • On February 24, 2026, Tennant's stock price dropped 23.4%, from $82.30 per share to $63.02 per share.

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

BFA Law is encouraging investors who have invested in Tennant to submit their information on the firm's website to discuss their legal options.

The takeaway

This case highlights the potential risks and consequences for companies that make misleading statements to investors about the implementation of critical business systems like ERP. Investors will be closely watching how Tennant addresses the fallout from these ERP issues and whether the company faces further legal action.