Tennant Company Faces Securities Fraud Probe Over ERP Rollout Issues

BFA Law Notifies Investors to Contact Firm About Potential Legal Options

Apr. 10, 2026 at 10:20am

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A high-end, photorealistic studio still-life photograph featuring a sleek, geometric metal sculpture in the shape of a gear or cog, resting on a clean white seamless background and dramatically lit from the side to highlight the polished, reflective surface. The gear symbolizes the complex machinery of enterprise software and the disruption caused by ERP system failures.A symbolic representation of the complex machinery behind enterprise software systems, whose failures can disrupt a company's operations and erode shareholder value.NYC Today

Leading securities law firm Bleichmar Fonti & Auld LLP has launched an investigation into Tennant Company (NYSE:TNC) for potential violations of federal securities laws related to the implementation and rollout of the company's new enterprise resource planning (ERP) system. The investigation focuses on whether Tennant made false and misleading statements to investors about the progress and impact of the ERP rollout, which caused a 23.4% stock drop on February 24, 2026 when the company revealed severe operational disruptions and $30 million in lost sales.

Why it matters

Tennant's ERP implementation issues highlight the risks companies face when rolling out major new technology systems, especially if they fail to accurately communicate challenges and setbacks to investors. The investigation raises questions about Tennant's internal controls, transparency, and accountability to shareholders.

The details

BFA Law is investigating whether Tennant made false and misleading statements to investors about the implementation and rollout of its new company-wide ERP system. Tennant had assured investors the project was 'progressing as we've anticipated,' was 'on time and on budget,' and that the Asia-Pacific launch had been 'successful' with 'mitigated disruptions.' However, on February 24, 2026, Tennant revealed the North American ERP rollout caused severe operational disruptions, including an inability to process and ship customer orders, resulting in $30 million in lost sales. Tennant also said it would need to spend over $20 million in 2026 to remediate the issues, far more than the $5 million it had initially planned.

  • On February 24, 2026, Tennant's stock price dropped 23.4% after the company revealed the ERP rollout issues.
  • Tennant had previously assured investors the ERP project was 'on time and on budget' and the Asia-Pacific launch was 'successful.'

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 they’re saying

“If you invested in Tennant, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.”

— BFA Law

What’s next

BFA Law is encouraging investors who purchased Tennant stock to contact the firm to discuss their potential legal options.

The takeaway

This case highlights the risks companies face when rolling out major new technology systems, especially if they fail to accurately communicate challenges and setbacks to investors. The investigation into Tennant raises questions about the company's internal controls, transparency, and accountability to shareholders.