A class action lawsuit has been filed on behalf of purchasers of InnerWorkings, Inc. (NASDAQ: INWK) common stock between February 15, 2012 and November 6, 2013, inclusive, seeking to recover damages for alleged violations of the Securities Exchange Act of 1934.
About InnerWorkings, Inc.
InnerWorkings, Inc. provides print management and promotional solutions to corporate clients in the United States and internationally. The company procures, manages, and delivers printed materials and promotional products. Its proprietary software applications and database create an integrated solution that stores, analyzes, and tracks the production capabilities of the supplier network, as well as quotes and prices data for print jobs.
InnerWorkings Inflates Its Revenue in Violation of GAAP
After the market closed on April 16, 2013, InnerWorkings lowered its full year 2013 guidance, citing a reduction of work orders from one of its large retail clients. On this news, InnerWorkings securities declined $3.55 per share, or more than 25%. However, on April 30, 2013, Prescience Point Research Group published an analyst report stating the Company was inflating its revenues in violation of GAAP by misapplying gross revenue accounting, placing it in violation of its credit agreement. Following this disclosure, InnerWorkings securities declined an additional $0.33 per share, or more than 3%.
As Prescience Point Research Group predicted, the Company announced lower-than-expected earnings per share on November 6, 2013, primarily due to issues with its Production Graphics division. When this information reached the market, the Company's shares fell $3.85 per share to $5.64, or over 40%, on volume of nearly 9 million shares, or 22 times the average daily volume.
InnerWorkings Announces That It Must Restate Its Financial Statements
On February 18, 2014, the Company announced that it would be restating its financial statements for all periods extending from the fourth quarter of 2011 through the third quarter of 2013 because the results from the Production Graphics division during that period had been fraudulently inflated by the senior management of that division.
Suffer InnerWorkings Losses?
If you suffered INWK stock losses and would like to speak with one of our securities attorneys or otherwise have questions, simply fill out the form to your right or contact Girard Gibbs securities lawyer John A. Kehoe at (212) 798-0159 or by email at firstname.lastname@example.org. Investors who suffered losses may file a motion with the Court to serve as lead plaintiff no later than April 28, 2014. No action is required to remain a member of the Class. You may retain counsel of your choice or take no action and remain an absent member of the Class.