Van Noppen v. Innerworkings, Inc.
The case is Van Noppen v. Innerworkings, Inc., No. 14-cv-1416 (N.D. Ill.). Lead plaintiff is Plymouth County Retirement System. The defendant is Innerworkings, Inc.
In the amended complaint filed July 28, 2014, lead plaintiffs allege that, during the class period and following an exchange about revenue recognition practices with the SEC, InnerWorkings made misleading statements and/or failed to disclose accounting improprieties; specifically, that: (1) InnerWorkings' revenues were inflated in violation of Generally Accepted Accounting Principles (GAAP); and (2) the company's recently acquired Production Graphics subsidiary, which was important for InnerWorkings' expansion in Europe, had been artificially inflating its cash flows and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) by engaging in sham transactions.
On November 2, 2016, the court granted final approval of a $6.025 million settlement on behalf of the class.
On April 16, 2013, Chicago, Illinois-based InnerWorkings 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 percent, to close at $10.48 per share on April 17, 2013.
On April 30, 2013, Prescience Point Research Group 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. Subsequently, InnerWorkings securities declined an additional than 3 percent to close at $10.07 per share.
On November 6, 2013, the company announced lower than expected earnings per share, primarily due to issues with its Production Graphics division. This news caused a drop by over 40 percent.
Submit Proof of Claim
If you purchased the publicly traded common stock and/or call options, and/or sold the put options, of Innerworkings during the period from February 15, 2012 through November 6, 2013, inclusive (the class period), and were allegedly damaged, you may be entitled to receive money from the proposed settlement.
To be eligible for a payment, you must submit a Proof of Claim form by October 8, 2016 in accordance with the instructions set forth in the Notice.
A Settlement Hearing was held on October 13, 2016 at 9:45 a.m. in Courtroom 1725 at the United States District Court, Northern District of Illinois, United States Courthouse, 219 South Dearborn Street, Chicago, IL 60604. The court has approved the settlement and related relief.
If you have questions about the settlement, please contact Labaton Sucharow at email@example.com or 1-888-219-6877, or contact the Claims Administrator, Garden City Group, at 855-907-3241.