NEW YORK, Feb. 27, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against InnerWorkings, Inc. ("InnerWorkings" or the "Company") (Nasdaq:INWK) and certain of its officers. The class action, filed in United States District Court, Northern District of Illinois, and docketed under 1:14-cv-01416, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired InnerWorkings securities between February 15, 2012 and November 6, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased InnerWorkings securities during the Class Period, you have until April 28, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
InnerWorkings provides print procurement solutions to corporate clients in the United States. The Company utilizes its proprietary software applications and database to create solutions that store, analyze, and track the production capabilities of supplier networks, as well as quote and price data for bids and print jobs.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company inflated its revenues in violation of Generally Accepted Accounting Principles; (2) the Company artificially inflated its cash flows and adjusted EBITDA; and (3) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On April 16, 2013, after the market closed, the Company revised its full year 2013 guidance due to a reduction of work orders by a large retail client. On this news, InnerWorkings securities declined $3.55 per share or more than 25%, to close at $10.48 per share on April 17, 2013.
On April 30, 2013, Prescience Point Research Group ("Prescience") published an analyst report with a "Strong Sell" recommendation, alleging among other things, that the Company was inflating its revenues by misapplying gross revenue and net accounting. On this news, InnerWorkings securities declined an additional $0.33 per share or more than 3%, to close at $10.07 per share on April 30, 2013.
On November 6, 2013, the Company announced lower than expected earnings per share, primarily due to issues with its Production Graphics division. On this news, the Company's shares fell $3.85 per share to $5.64, or over 40%, on November 6, 2013.
On February 18, 2014, the Company announced that it would need to restate its financial statements for all periods extending to the fourth quarter of 2011 through the third quarter of 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. WilloughbyPomerantz LLPrswilloughby@pomlaw.com
Source: Pomerantz LLP