Tennant Company Faces Securities Fraud Probe Over ERP System Rollout

BFA Law Notifies Investors to Contact the Firm Regarding Potential Violations of Federal Securities Laws

Apr. 10, 2026 at 10:59am

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A highly detailed, photorealistic studio photograph of a metallic gear or cog-shaped object floating on a clean, white background, conceptually representing the technical problems with Tennant's new enterprise resource planning system.A symbolic representation of the technical issues that plagued Tennant's ERP system rollout, leading to a major stock drop and securities fraud investigation.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 comes after Tennant's stock plummeted 23.4% on February 24, 2026, following the company's revelation that the ERP system rollout in North America caused severe operational disruptions, resulting in $30 million in lost sales and over $20 million in remediation costs.

Why it matters

The investigation into Tennant's handling of the ERP system rollout and its potential impact on investors highlights the importance of transparency and accurate reporting by public companies, especially when implementing major operational changes. The case also underscores the potential legal consequences companies may face if they are found to have made false or misleading statements to investors.

The details

BFA Law is investigating whether Tennant made false and misleading statements to investors regarding the implementation and rollout of its new, company-wide ERP system. The firm alleges that Tennant assured investors the project was 'progressing as we've anticipated,' was 'on time and on budget,' and that the launch of the ERP in its Asia-Pacific region had been 'successful,' with the company stating it had 'mitigated disruptions and stabilized operations.' However, on February 24, 2026, Tennant revealed that the rollout of the new ERP system in North America caused severe operational disruptions, including the inability to process and ship customer orders following the launch of the system.

  • On February 24, 2026, Tennant's stock dropped 23.4% after the company revealed issues with its ERP system rollout.
  • Tennant had previously assured investors the ERP project was 'progressing as we've anticipated,' was 'on time and on budget,' and that the launch in Asia-Pacific had been '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, with a track record of notable successes, including recovering over $900 million in value from Tesla's Board of Directors and $420 million from Teva Pharmaceutical.

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What’s next

BFA Law is encouraging investors who have invested in Tennant to contact the firm to discuss their rights and potential legal options.

The takeaway

This investigation highlights the importance of public companies being transparent and accurate in their reporting to investors, especially when implementing major operational changes like new ERP systems. The potential legal consequences for Tennant underscore the need for companies to carefully manage such critical projects and communicate effectively with shareholders.