Attention InnerWorkings, Inc. Investors: InnerWorkings Misled Investors According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of InnerWorkings, Inc. (NASDAQ: INWK) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of Illinois. The complaint alleges that the company and certain of its officers and directors violated the Securities and Exchange Act of 1934 between February 15, 2012 and November 6, 2013 (the “Class Period”). InnerWorkings procures, manages, and delivers printed materials and promotional products to corporate clients in the United States and internationally.
InnerWorkings Is Accused of Inflating Revenue
According to the complaint, shares of InnerWorkings fell on multiple occasions during the Class Period beginning with a decline of $3.55 per share, or over 25%, to close at $10.48 on April 17, 2013. This initial decline followed an announcement that the company would revise its full year 2013 guidance in response to a significant reduction of work orders by a large retail client. Shares of InnerWorkings further declined $0.33 per share, or over 3%, to close at $10.07 on April 30, 2013 after an analyst report published by Prescience Point Research Group alleged that the InnerWorkings’ revenues were inflated because of its misapplication of gross revenue and net accounting.
Then, following the release of lower than expected earnings resulting from issues with its French-based business, Production Graphics, the company’s shares fell an additional $3.85 per share, or over 40%, to close at $5.64, on November 6, 2013. Finally, on February 18, 2014, InnerWorkings announced that because of fraud in the Productions Graphics division, the company will restate its 2011 to 2013 financial statements.
The complaint further alleges that InnerWorkings made materially false and misleading statements regarding the company’s business, operations, and prospects which inflated its revenues in violation of Generally Accepted Accounting Principle and artificially inflated its cash flows and adjusted EBITDA. As a result, InnerWorkings’ financial statements were materially false and misleading throughout the Class Period.
InnerWorkings Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
If you invested in InnerWorkings and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.