WageWorks Must Face Investors' Claims It Misreported Profits

Law360 (June 2, 2020, 4:18 PM EDT) -- Benefits administrator WageWorks Inc. and its leadership can't shake a proposed securities fraud class action accusing the company of padding its revenue reports with money it was never supposed to get, a California federal judge said Monday.

In his order, U.S. District Judge Jeffrey S. White determined that allegations the company had failed to share some key details about its finances suggests "deliberate recklessness because it indicates that senior management possessed information that, had it been communicated, would have indicated that the financial reporting was false."

Judge White also said that concerns raised by WageWorks' accounting firm, KPMG, "about 'management override...

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