NEW YORK, March 9, 2018 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating San Mateo, California-based WageWorks, Inc. ("WageWorks" or the "Company") (NYSE: WAGE) concerning potential violations of the federal securities laws.
On March 1, 2018, after the market opened, WageWorks disclosed that it was "delaying its Annual Report on Form 10K for the year ended December 31, 2017 and its financial results and associated conference call for the fourth quarter of 2017."
On March 1, 2018, WageWorks shares declined from a close on February 28, 2018 of $52.45 per share, to close at $42.70 per share, a decline of $9.75 per share or approximately 19% on heavier than average volume.
On March 2, 2018, WageWorks filed a report with the U.S. Securities and Exchange Commission that stated, among other things, that:
"The Company has concluded that it has a material weakness in its internal control over financial reporting as of December 31, 2017 related to managing change and assessing risk in the areas of non-routine and complex transactions. As a result of the material weakness, the Company has concluded that its internal control over financial reporting and disclosure controls and procedures were ineffective as of December 31, 2017. The Company is in the process of designing processes and controls to address this material weakness. The Company intends to disclose more detailed description of this weakness, including a plan for remediating this deficiency, in the 2017 Form 10-K.
The Audit Committee of the Company's Board of Directors is conducting an independent investigation of the Company's internal control over financial reporting in fiscal 2016 and 2017. Among other matters, the investigation consists of a review of certain issues, including revenue recognition, related to the accounting for a government contract during fiscal 2016 and associated issues with whether there was an open flow of information and appropriate tone at the top for an effective control environment.
Additionally, the Audit Committee investigation of accounting and internal control matters is ongoing and may ultimately result in the identification of other accounting issues, further material weaknesses, and/or require the restatement of the Company's financial statements for previous periods."
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has decades of experience in prosecuting investor class actions.
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SOURCE Kaplan Fox & Kilsheimer LLP