San Diego, CA -- (ReleaseWire) -- 04/29/2014 -- An investor, who purchased shares of InnerWorkings, Inc. (NASDAQ:INWK), filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged violations of Federal Securities Laws by InnerWorkings, Inc. in connection with certain allegedly false and misleading statements made between February 15, 2012 and November 6, 2013.
If you purchased shares of InnerWorkings, Inc. (NASDAQ:INWK), you have certain options and for certain investors are short and strict deadlines running. Deadline: April 28, 2014. NASDAQ:INWK investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of InnerWorkings, Inc. (NASDAQ:INWK) between February 15, 2012 and November 6, 2013, that InnerWorkings, Inc. and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that defendants made allegedly false and/or misleading statements and/or failed to disclose that InnerWorkings, Inc. inflated its revenues in violation of Generally Accepted Accounting Principles, that InnerWorkings, Inc. artificially inflated its cash flows and adjusted EBITDA, and that as a result of the foregoing, InnerWorkings, Inc.’s financial statements were allegedly materially false and misleading at all relevant times.
InnerWorkings, Inc. reported that its annual Total Revenue rose from $400.45 million in 2009 to $797.70 million in 2012 and that its respective Net Income increased from $6.31 million to $19.11 million.
Shares of InnerWorkings, Inc. grew from $2.10 per share in February 2009 to as high as $15.64 per share in March 2013.
Then on April 16, 2013 InnerWorkings, Inc. announced its revised full year guidance and previewed first quarter 2013 results.
Shares of InnerWorkings, Inc. declined from $14.03 per share on April 16, 2013 to $10.50 per share in April 17, 2013.
On November 6, 2013, InnerWorkings, Inc. lowered its 2013 revenue guidance and GAAP diluted earnings per share guidance due to the performance of its Productions Graphics subsidiary. On that same day, InnerWorkings, Inc. reported that it removed Christophe Delaune as Production Graphic’s President in October 2013, who had been in that role since InnerWorking’s 2011 acquisition of Productions Graphics – then principally owned by Mr. Delaune. InnerWorkings also indicated there are potential disputes relating to the acquisition agreement of Production Graphics.
Shares of InnerWorkings, Inc. declined from $10.35 per share on October 24, 2013 to $5.64 per share on November 7, 2013.
Then on February 18, 2014, InnerWorkings, Inc. revealed that its previously issued financial statements for the periods beginning with the fourth quarter of 2011 and the year ended December 31, 2011 through the third quarter of 2013 should no longer be relied upon and would be restated. This was based on InnerWorkings’ conclusion that Mr. Delaune artificially inflated results to meet earn-out targets and induce the Company to make earn-out payments relating to the Productions Graphics acquisition.
Shares of InnerWorkings, Inc. closed at $7.12 per share on April 25, 2014.
Those who purchased shares of InnerWorkings, Inc. (NASDAQ:INWK) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego