Kaskela Law LLC: Shareholder Class Action Filed Against WageWorks, Inc. – WAGE

RADNOR, Pa., May 04, 2018 -- Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against WageWorks, Inc. (NYSE:WAGE) (“WageWorks” or the “Company”) on behalf of purchasers of the Company’s securities between May 6, 2016 and March 1, 2018, inclusive (the “Class Period”).

WageWorks investors are encouraged to visit www.kaskelalaw.com/case/wageworks-inc/ to receive additional information about this action and submit their information online.  Investors may also contact attorney D. Seamus Kaskela at (888) 715 – 1740, or via email at [email protected], to discuss their legal rights and options with respect to this action.

On March 1, 2018, WageWorks disclosed that it was delaying the filing of its fiscal 2017 Annual Report with the SEC.  Following this news, shares of the Company’s common stock declined $9.75 per share, or over 18.5%, to close at $42.70 on March 1, 2018.

The following day the Company reported that it “has concluded that it has a material weakness in its internal control over financial reporting … related to managing change and assessing risk in the areas of non-routine and complex transactions.” Additionally, the Company disclosed that its Audit Committee was investigating “certain issues, including 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.”

The shareholder class action complaint alleges that WageWorks and certain of its executive officers made a series of false and misleading statements and/or failed to disclose to investors that: (i) there were material weaknesses in WageWorks’ systems of internal controls, and that the Company’s practices and controls were ineffective; (ii) WageWorks had failed to adequately manage and assess risk relating to certain complex transactions, including certain government contracts; (iii) WageWorks had improperly recognized revenue, thereby inflating its earnings and related financial metrics; and (iv) WageWorks’ financial statements were materially false and misleading at all relevant times.  The complaint further alleges that, as a result of the foregoing, investors purchased WageWorks’ common stock at artificially inflated prices during the Class Period.

Investors who purchased WageWorks securities during the Class Period may, no later than May 8, 2018, seek to be appointed as a lead plaintiff representative of the class through Kaskela Law or other counsel, or may choose to do nothing and remain an absent class member.  In order to be appointed as a lead plaintiff a class member meet certain legal requirements. 

Kaskela Law LLC exclusively prosecutes shareholder actions in state and federal courts throughout the country on behalf of investors.  For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.

CONTACT:

KASKELA LAW LLC
D. Seamus Kaskela, Esq.
201 King of Prussia Road
Suite 650
Radnor, PA 19087
(888) 715 – 1740
[email protected]
www.kaskelalaw.com