Wageworks Inc (NYSE:WAGE) Investor Securities Class Action Lawsuit 03/09/2018

If you purchased a significant amount of shares of Wageworks Inc (NYSE:WAGE) between May 6, 2016 and March 1, 2018, and / or if you purchased any NYSE:WAGE shares prior to May 2016 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: May 8, 2018. NYSE:WAGE investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Case Name: 
Wageworks Shareholder Class Action Lawsuit 03/09/2018
Case Status: 
Lawsuit Filed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 

An investor in shares of Wageworks Inc (NYSE:WAGE) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Wageworks in connection with certain allegedly false and misleading statements made between May 6, 2016 and March 1, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of Wageworks Inc (NYSE:WAGE) common shares between May 6, 2016 and March 1, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 6, 2016 and March 1, 2018, the defendants issued, or caused to be issued, a series of allegedly false and/or misleading financial statements, failing to disclose that there were material weaknesses in WageWorks’ systems of internal controls and that its practices and controls were ineffective, that WageWorks failed to adequately manage and assess risk relating to certain complex transactions, including certain government contracts, that WageWorks improperly recognized revenue thereby inflating its earnings and related financial metrics, and that as a result of the foregoing, WageWorks’ financial statements were materially false and misleading at all relevant times.

San Mateo, CA based WageWorks, Inc. is engaged in administering Consumer-Directed Benefits (CDBs). Wageworks Inc reported that its annual Total Revenue rose from $334.32 million in 2015 to $364.71 million in 2016 and that its Net Income declined from $22.95 million in 2015 to $20.20 million in 2016. Shares of Wageworks Inc (NYSE:WAGE) reached in early 2017 as high as $80.20 per share.

On March 1, 2018, W Wageworks Inc announced “it is delaying its Annual Report on Form 10K for the year ended December 31, 2017 and its financial results and associated conference call for the fourth quarter of 2017.”
Then, on March 2, 2018, Wageworks Inc announced it required additional time to complete its financial statements and assess its internal controls over financial reporting. Wageworks Inc concluded it has a material weakness in its internal controls over financial reporting as of December 31, 2017 related to “managing change and assessing risk in the areas of non-routine and complex transactions.” Wageworks Inc further announced its Audit Committee is investigating WageWorks’ internal controls over financial reporting in fiscal 2016 and 2017, including a review of revenue recognition “related to the accounting for a government contract during fiscal 2016 and associated issues with whether there was an open flow of information and appropriate tone at the top for an effective control environment.”