BENSALEM, Pa –Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that purchased WageWorks Inc. (“WageWorks” or the “Company”) (NYSE: WAGE) securities between May 6, 2016 and March 1, 2018, inclusive (the “Class Period”). WageWorks investors have until May 8, 2018 to file a lead plaintiff motion.
Investors suffering losses on their WageWorks 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 protected].
On March 1, 2018, the Company announced a delay in the filing of its annual report for the year ended December 31, 2017. The Company further disclosed that it found a “material weakness in its internal control over financial reporting” related to “managing change and assessing risk in the areas of non-routine and complex transactions.” WageWorks further stated that its Audit Committee was investigating accounting matters, and that the investigation may ultimately result in the identification of other accounting issues. On this news the Company’s share price fell $9.75 per share, or nearly 20%, to close at $42.70 on March 1, 2018.
The complaint filed in this class action alleges that, defendants during the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) there were material weaknesses in WageWorks’ systems of internal controls and that its practices and controls were ineffective; (2) WageWorks failed to adequately manage and assess risk relating to certain complex transactions, including certain government contracts; (3) WageWorks improperly recognized revenue thereby inflating its earnings and related financial metrics; and (4) as a result, WageWorks’ financial statements were materially false and misleading at all relevant times.
If you purchased shares of WageWorks, 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 [email protected], or visit our website at www.howardsmithlaw.com.
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