InnerWorkings Inc. Under Investigation for Securities Fraud, Faces Class-Action Lawsuit
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Shareholder rights law firm Bernstein Liebhard LLP announced in a press release that it is investigating "potential securities fraud claims on behalf of shareholders of Chicago-based InnerWorkings Inc."
On Monday, May 7, InnerWorkings revealed that it would restate its financial statements for fiscal years ending Dec. 31 2017, 2016 and 2015, along with all interim periods within those time frames. Bernstein Liebhard advised anyone who purchased InnerWorkings securities or has information on the matter to visit the company's shareholder page, or contact Daniel Sadeh.
Today, Bernstein Liebhard announced that a class-action lawsuit has been filed on behalf of those who purchased or acquired InnerWorkings securities between Aug. 11, 2015 and May 7, 2018, when the news of the incorrect financial reports broke.
From the press release:
According to the lawsuit, throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (1) InnerWorkings' financial statements for the fiscal years ending December 31, 2017, 2016, and 2015 as well as all interim periods contained errors that required restating; and (2) InnerWorkings' financial statements were materially false and misleading at all relevant times.
"Accordingly, investors should no longer rely upon the company's previously issued financial statements for these periods, any earnings releases or other communications relating to these periods, or projections estimates for any future periods," the statement from Monday said.
InnerWorkings stock took a hit as a result of the news. On May 7, stock closed at $9.68. Following the release, it went as low as $8.45.
In a separate press release, the company said it would postpone the release of its first quarter 2018 financial results due to the factual errors in financial statements, and said that the issues were due to "recording a portion of costs of good sold in the wrong period."
We will continue to monitor this story as it develops.
Brendan Menapace is the content director for Promo+Promo Marketing.
