NEW YORK--(BUSINESS WIRE)--Pomerantz LLP announces that a class action lawsuit has been filed against WageWorks, Inc. (“WageWorks” or the “Company”) (NYSE: WAGE) and certain of its officers. The class action, filed in United States District Court, Northern District of California, San Jose Division, and docketed under 18-cv-01796, is on behalf of a class consisting of investors who purchased or otherwise acquired common shares of WageWorks between May 5, 2016 and February 28, 2018, both dates inclusive (the “Class Period”). Plaintiff seeks to recover compensable damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased WageWorks shares between May 5, 2016, and February 28, 2018, both dates inclusive, you have until May 8, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
WageWorks, Inc. provides tax-advantaged programs for consumer-directed health, commuter, and other employee spending account benefits, or CDBs, in the United States. The Company operates spending account management programs such as health and dependent care Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and transit programs.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed 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 (iv) as a result, WageWorks’ public statements were materially false and misleading at all relevant times.
On March 1, 2018, WageWorks issued a press release entitled “WageWorks to Delay Form 10K Filing for Fiscal Year 2017,” announcing that it was delaying the filing of its Form 10-K for the fiscal year ending December 31, 2017, admitting that there were material weaknesses in WageWorks’ systems of internal controls and that its practices and controls as to its accounting and preparation of earnings disclosures were ineffective.
On this news, WageWorks’ share price fell $9.75, or 18.58%, to close at $42.70 per share on March 1, 2018, on heavy volume.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com