SAN DIEGO & SAN MATEO, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of WageWorks, Inc. (NYSE: WAGE) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between May 6, 2016 and March 1, 2018. WageWorks administers consumer-directed benefits and provides corporate tax advantages for employers in the United States.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/wageworks-inc
WageWorks Accused of Inflating its Earnings
According to the complaint, WageWorks repeatedly issued encouraging financial results, assuring investors that the company's disclosure controls and procedures were effective. Despite WageWorks' positive representations, WageWorks failed to adequately manage and assess risk relating to certain complex transactions and improperly recognized revenue, thereby inflating its earnings. While WageWorks' stock was artificially inflated, WageWorks' Chief Executive Officer sold nearly all of his holdings in WageWorks common stock, including 495,148 shares for net proceeds of $31.3 million. Notably, his sales were not made pursuant to a 10b5-1 trading plan and they were dramatically out of line with past trading practices. On March 1, 2018, WageWorks revealed that it would delay filing its Form 10-K. On this news, WageWorks' stock price plunged nearly 19% to close at $42.70 per share on March 1, 2018. On March 2, 2018, WageWorks revealed that it had a material weakness in the company's internal controls and that its Audit Committee was investigating the company's revenue recognition practices.
WageWorks Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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