NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in WageWorks, Inc. (“WageWorks” or the “Company”) (NYSE:WAGE) of the May 8, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in WageWorks stock or options between May 6, 2016 and March 1, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/WAGE. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased WageWorks securities between May 6, 2016 and March 1, 2018 (the “Class Period”). The case, Government Employees' Retirement System of the Virgin Islands et al v. Wageworks, Inc., et.al., No. 4:18-cv-01523 was filed on March 9, 2018, and has been assigned to Judge Jeffrey Steven White.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) there were material weaknesses in WageWorks’ systems of internal controls and that its practices and controls were ineffective; (ii) WageWorks failed to adequately manage and assess risk relating to certain complex transactions, including certain government contracts; (iii) WageWorks improperly recognized revenue thereby inflating its earnings and related financial metrics, and that, (iv) as a result, WageWorks’ financial statements were materially false and misleading at all relevant times.
Specifically, during intraday trading on March 1, 2018, WageWorks issued a press release announcing that the Company would be unable to timely file “its Annual Report on Form 10K for the year ended December 31, 2017[.]” On this news, WageWorks’ share price fell from $52.45 per share on February 28, 2018 to a closing price of $42.70 on March 1, 2018—a $9.75 or a 18.59% drop. Then, pre-market on March 2, 2018, WageWorks filed a Form 12b-25 with the Securities and Exchange Commission, disclosing, in part, that “[t]he Company has concluded that it has a material weakness in its internal control over financial reporting as of December 31, 2017…” and that “the Company has concluded that its internal control over financial reporting and disclosure controls and procedures were ineffective as of December 31, 2017.”
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding WageWorks’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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