BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Inspirato Incorporated (“Inspirato” or the “Company”) (NASDAQ: ISPO) securities between May 11, 2022 and December 15, 2022, inclusive (the “Class Period”). Inspirato investors have until April 17, 2023 to file a lead plaintiff motion.
Investors suffering losses on their Inspirato investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On November 14, 2022, Inspirato filed a current report stating that its Audit Committee had determined that financial statements from the previous two quarters should no longer be relied upon. The Company also notified the SEC that it would be unable to timely file its third quarter 2022 quarterly report. On this news, Inspirato’s stock price fell $0.27, or 11.9%, to close at $2.00 per share on November 14, 2022, thereby injuring investors.
Then, on November 23, 2022, Inspirato disclosed that it had received a notice from the Listing Qualifications Department of NASDAQ, notifying it that it was not in compliance with filing requirements. On this news, Inspirato’s stock price fell $0.06, or 3.2%, to close at $1.81 per share on November 25, 2022, thereby further injuring investors.
Then, on December 15, 2022, after market hours, Inspirato amended its first quarter 2022 financial results, disclosing material weaknesses within the Company, including a lack of a “sufficient number of personnel with the appropriate level of knowledge and experience in the application of GAAP” and “a lack of the design and implementation of certain ITGCs related to [its] financial applications and data being adequately restricted.” On this news, Inspiratos’ stock price fell $0.10, or 6.6%, to close at $1.41 per share on December 16, 2022, thereby further injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s financial statements for first and second quarter 2022 could no longer be relied upon; (2) that these financial statements incorrectly applied accounting standards related to the assessment of right-of-use assets and liabilities, resulting in an understatement of both right-of-use assets and total lease liabilities of approximately 9% for each of those periods ; (3) the Company was not in compliance with Nasdaq listing requirements due to failure to file its third quarter 2022 quarterly report; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Inspirato securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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