SAN FRANCISCO--(BUSINESS WIRE)--The law firm Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the publicly traded securities of WageWorks, Inc. (“WageWorks” or the “Company”) (Nasdaq: WAGE) between May 5, 2016 and March 1, 2018 (the “Class Period”).
If you purchased or otherwise acquired WageWorks publicly traded securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than May 8, 2018. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the actions.
WageWorks investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Michael Miarmi of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the WageWorks Securities Class Litigation
WageWorks, incorporated in Delaware and headquartered in San Mateo, California, provides tax-advantaged programs for consumer-directed health, commuter, and other employee spending account benefits in the United States.
The action alleges that throughout the Class Period, defendants issued, or caused to be issued, a series of false or misleading financial statements, failing to disclose that: (i) there were material weaknesses in WageWorks’ systems of internal controls and 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 of the foregoing, WageWorks’ financial statements were materially false or misleading at all relevant times.
On March 1, 2018, WageWorks announced that it would delay filing its annual report on Form 10-K. On that news, the Company’s share price fell 18.6%, or $9.75 per share, from its closing price of $52.45 on February 28, 2018 to close at $42.70 per share on March 1, 2018, on highly elevated trading volume.
The next day, March 2, 2018, WageWorks disclosed that the delay in reporting its financials was due to a material weakness in internal control over financial reporting as of December 31, 2017, and that its audit committee was conducting an investigation into the Company’s revenue recognition practices during fiscal 2016. The investigation is also examining whether there was an open flow of information and appropriate “tone at the top” for an effective control environment at the Company. The Company further stated the investigation is ongoing and could result in the identification of other accounting issues, further material weaknesses, and/or require the restatement of the Company’s financial statements for previously reported periods.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In late 2016, Benchmark Litigation named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
