NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Sharecare, Inc. (“Sharecare” or the “Company”) (NASDAQ: SHCR) securities during the period of May 10, 2023 to March 28, 2024, inclusive (“the Class Period”). Investors have until June 18, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On March 29, 2024, Sharecare filed with the U.S. Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the year ended December 31, 2023. In this report, Sharecare’s CEO and CFO disclosed that the Company’s disclosure controls and procedures required by Rules 13a-15(e) and 15d-15(e) of the Exchange Act were not effective due to a material weakness in internal control over financial reporting. Specifically, Sharecare’s internal controls were inadequate regarding “revenue recognition evaluation resulting from a change in services provided to a customer, due to untimely communication between cross-functional teams.” On this news, the price of Sharecare shares declined by $0.22 per share, or approximately 28.3%, from $0.77 per share on March 28, 2024 to close at $0.55 on April 1, 2024.
The lawsuit alleges that Sharecare made materially false and/or misleading statements and/or failed to disclose that: (1) Sharecare lacked adequate internal controls and; (2) as a result, the Company’s statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.
If you purchased or otherwise acquired Sharecare securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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