Investors allege WageWorks issued materially false financial reports

By Noddy A. Fernandez | Mar 23, 2018

SAN JOSE, Calif. (Legal Newsline) – Investors in a San Mateo, California tax-advantage program provider allege stock traded at artificially inflated prices because of misleading financial statements.

Government Employees' Retirement System of the Virgin Islands, individually and on behalf of all others similarly situated, filed a complaint on March 9 in the U.S. District Court for the Northern District of California, San Jose Division against WageWorks Inc., Joseph L. Jackson and Colm M. Callan over alleged violation of the Securities Exchange Act.

According to the complaint, the plaintiffs allege that the defendants issued false or misleading financial statements wherein the company allegedly failed to disclose material weaknesses in its systems of internal controls. As a result, the plaintiff alleges WageWorks common stock traded at artificially inflated prices.

The plaintiff holds WageWorks Inc., Jackson and Callan responsible because the defendants allegedly failed to disclose material adverse information and/or misrepresented the truth about company's business, operations and prospects.

The plaintiff requests a trial by jury and seeks damages, pre- and post-judgment interest, as well as attorneys’ and experts’ witness fees and other costs, and such other relief as this court deems just and proper. It is represented by Stephen R. Basser and Samuel M. Ward of Barrack, Rodos & Bacine in San Diego, California and by Jeffrey A. Barrack of Philadelphia, Pennsylvania.

U.S. District Court for the Northern District of California, San Jose Division case number 4:18-cv-01523-JSW

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Barrack, Rodos & Bacine Political Action Committee U.S. District Court for the Northern District of California, San Jose Division

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