Investors Misled, 2 Say in Suit Against Tandon

Tandon is being sued by two shareholders who allege that the Chatsworth-based computer equipment company misled investors by failing to make a timely disclosure of its business problems in 1984.

The suit, filed last month in Los Angeles Superior Court by investors Stephen Rosen and David Hanon, resembles a case filed against Tandon in July by New Jersey investor Milton Engel. In that suit, Engel alleges that Tandon failed to disclose such problems as the company’s difficulties in controlling expenses and dealing with competitors.

The new suit names the company and 10 of its current and former officers and directors, including Chairman Sirjang Lal (Jugi) Tandon. The suit alleges that Tandon and other officers profited by selling stock before the company began reporting a string of losses in late 1984 and in 1985. Tandon, which makes personal computers and computer memory equipment known as disk drives, lost $135.4 million in its fiscal year ended Sept. 27, 1985.

A Tandon spokesman said the company would not comment on the suit.