- Company Name
- InnerWorkings, Inc.
- Stock Symbol
- Class Period
- August 11, 2015 to May 7, 2018
- Motion Deadline
- July 9, 2018
- Central District of California
The complaint charges InnerWorkings and certain of its officers with violations of the Securities Exchange Act of 1934. InnerWorkings is a leading execution firm serving Fortune 1000 brands across a wide range of industries. As a comprehensive outsourced enterprise solution, the Company leverages proprietary technology, an extensive supplier network and deep domain expertise to streamline the production of branded materials and retail experiences across geographies and formats.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and financial results, including that its financial statements for the fiscal years ending December 31, 2017, 2016, and 2015, as well as all interim periods, contained errors that would require restatement. As a result of these false statements and/or omissions, InnerWorkings securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $12 per share.
Then on May 7, 2018, InnerWorkings announced that it was postponing the release of its first quarter 2018 financial results because it had identified “errors in its historical financial statements . . . during the course of its first quarter financial reporting close process. The Company will be restating its financial statements for the years ended December 31, 2017, 2016, and 2015, and all interim periods within those years.” According to the Company, “[t]he accounting errors relate primarily to recording a portion of costs of goods sold in the wrong period,” and when corrected and restated the errors would decrease income before taxes for the years ended December 31, 2017, 2016 and 2015 by $2.5-$4.5 million, $1.5-$2.5 million and $0.5-$1.5 million, respectively. On this news, the price of InnerWorkings securities fell over 6% on May 8, 2018, to close at $9.06 per share.