SAN FRANCISCO--(BUSINESS WIRE)--Girard Gibbs LLP announces that a class action lawsuit has been filed on behalf of purchasers of InnerWorkings, Inc. (NASDAQ:INWK) common stock between February 15, 2012 and November 6, 2013, inclusive, seeking to recover damages for alleged violations of the Securities Exchange Act of 1934.
InnerWorkings, Inc. provides print management and promotional solutions to corporate clients in the United States and internationally.
According to the complaint, after the market closed on April 16, 2013, the Company lowered its full year 2013 guidance, citing a reduction of work orders from one of its large retail clients. On this news, InnerWorkings securities declined $3.55 per share, or more than 25%. However, on April 30, 2013, Prescience Point Research Group published an analyst report stating the Company was inflating its revenues in violation of GAAP by misapplying gross revenue accounting, placing it in violation of its credit agreement. Following this disclosure, InnerWorkings securities declined an additional $0.33 per share or more than 3%.
Then, on November 6, 2013, the Company announced lower-than-expected earnings per share, primarily due to issues with its Production Graphics division. On this announcement, the Company’s shares fell $3.85 per share to $5.64, or over 40%, on volume of nearly 9 million shares, or 22 times the average daily volume.
On February 18, 2014, the Company announced that it would be restating its financial statements for all periods extending from the fourth quarter of 2011 through the third quarter of 2013 because the results from the Production Graphics division during that period had been fraudulently inflated by the division’s senior management.
If you meet the legal requirements to be a member of the Class described above, you may file a motion with the Court no later than April 28, 2014 to serve as lead plaintiff. Your ability to remain a member of the Class does not require that you take any action at this time. You may retain counsel of your choice or take no action and remain an absent member of the Class.
If you would like to discuss your rights or interests regarding the InnerWorkings class action lawsuit, please contact Girard Gibbs securities lawyer John A. Kehoe at (212) 798-0159 or by email at jak@girardgibbs.com.
Girard Gibbs LLP is one of the nation’s leading law firms representing individual and institutional investors in securities fraud class actions and litigation to correct abusive corporate governance practices, breaches of fiduciary duty and proxy violations.
