Tennant Company (TNC) Investigation

The investigation is focused on the propriety of Tennant’s disclosures about the progress of its efforts to modernize its North America ERP system and related challenges, if any.

As recently as November 4, 2025, Tennant touted the success of its Asia Pacific ERP modernization and instilled confidence in investors about its North America ERP system modernization. At the time, the company was well into its fourth quarter.

Investors’ expectations were dashed on February 24, 2026, when Tennant reported dismal Q4 and FY 2025 financial results.

The company’s GAAP net income for 2025 came in at just $43.8 million, a whopping year-over-year decrease of about 47%. Worse, during Q4 2025, Tennant sustained a net loss that was 166% downward move from its net income for the year earlier period.

During the related earnings call, management revealed that during the first week of November the North America ERP go-live “introduced severe functionality issues that limited our ability to enter orders, ship products, and service our customers.” Management further said, “[i]n North America, we lost three, four weeks of machine order entry and parts shipping capability.”

Tennant management quantified the adverse financial impact: “[t]hese dynamics, combined with our limited ability to operate plants at normal capacity, resulted in an estimated $30 million impact on net sales.” Management also revealed that the Q4 challenges will continue into early 2026.

The market swiftly reacted, erasing about $343 million of Tennant’s market capitalization.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the TNC investigation about?

We are investigating precisely when Tennant knew of serious problems with its North America ERP and whether it may have concealed information crucial to investors’ decisions.

WHAT SHOULD I DO?

I worked at TNC. What should I do?

If you were an employee of TNC, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in TNC, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any TNC investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.