Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in WageWorks (NYSE:WAGE) in connection to alleged violations of securities laws by WAGE. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in WageWorks from May 6, 2016 until March 1, 2018.
The class action complaint specifically alleges that during the period in question, WAGE might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that the company’s internal controls’ suffered material weaknesses; that the company had ineffective practices and controls; that the company had failed to properly manage and evaluate the risk associated with certain complex transactions, for instance, contracts with governments; that the company made improper revenue recognitions; that as a result of these improper recognitions, the company inflated earnings figures and other financial metrics; and that consequently the company’s financial statements contained material falsehoods and misleading statements during the relevant period. When the company published a press release on March 1, 2018, announcing that there would be a delay in the filing of its Form 10-K for the fiscal year concluding on December 31, 2017, and disclosing the presence of material weaknesses in its internal controls, as well as the ineffectiveness of certain accounting practices, the company’s share price declined about 18.58%, or $9.75, closing at $42.70/share on that day. The complaint alleges that when true details emerged, investors suffered losses.
According to the company’s website, WageWorks “a leading on-demand provider of Consumer-Directed Benefits (CDBs) in the United States.” Its programs provide a means for employees, as well as families of employees, to “save money by using pre-tax dollars” to fund healthcare as well as commuter expenses, in turn allowing employers to benefit from reduced payroll taxes. The company trades on he New York Stock Exchange under the symbol WAGE.
A class action lawsuit has already been filed in connection with WageWorks. If you wish to serve as lead plaintiff in the WAGE lawsuit, you must move the Court no later than May 8, 2018. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.