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May 3, 2021 - The court preliminary approved the settlement.
April 1, 2021 - A stipulation of settlement was filed by the parties.
June 1, 2020 - The court denied the defendants' motion to dismiss.
July 26, 2019 - A motion to dismiss the amended consolidated complaint was filed.
May 16, 2019 - An amended consolidated complaint was filed.
March 9, 2018 - 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 Inc 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 Inc’s systems of internal controls and that its practices and controls were ineffective, that WageWorks Inc failed to adequately manage and assess risk relating to certain complex transactions, including certain government contracts, that WageWorks Inc improperly recognized revenue thereby inflating its earnings and related financial metrics, and that as a result of the foregoing, WageWorks Inc’s 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, 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 Inc's 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.”