Gibbs LLP announces that 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.
InnerWorkings, Inc. provides print management and promotional solutions
to corporate clients in the United States nd internationally.
According to the complaint, after the market closed on April 16, 2013,
the Company 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
Then, on November 6, 2013, the Company announced lower-than-expected
earnings per share, primarily due to issues with its Production Graphics
division. On this announcement, 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.
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 division's senior management.
If you meet the legal requirements to be a member of the Class described
above, you may file a motion with the Court no later than April 28, 2014
to serve as lead plaintiff. Your ability to remain a member of the Class
does not require that you take any action at this time. You may retain
counsel of your choice or take no action and remain an absent member of
If you would like to discuss your rights or interests regarding the
InnerWorkings class action lawsuit, please contact Girard
Gibbs securities lawyer John A. Kehoe at (212) 798-0159 or by email
Girard Gibbs LLP is one of the nation's leading law firms representing
individual and institutional investors in securities fraud class actions
and litigation to correct abusive corporate governance practices,
breaches of fiduciary duty and proxy violations.
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