- WeWork reported financial report errors in a regulatory filing with the U.S. SEC last week.
- Mislabeled equities led Bragar Eagal & Squire to investigate on behalf of shareholders.
- Law firm to examine whether WeWork conducted violations.
After WeWork reported errors in financial reports last week, a law firm announced it will investigate the coworking firm.
Stockholder rights law firm Bragar Eagal & Squire, P.C. have announced that it is investigating claims against WeWork on behalf of WeWork stockholders.
This news follows the announcement that WeWork made in a U.S. Securities and Exchange Commission regulatory filing last week, which stated it would need to correct statements made in financial reports across three quarters.
WeWork referred to some shares as “permanent equity,” but the company is now stating that those shares should have been listed as “temporary equity.”
The coworking company’s management stated that this error revealed “a material weakness in internal control over financial reporting relating to the interpretation and accounting” for portions of its shares.
As a result, the firm says that the financial report should not be relied on and would be amended.
Now, Bragar Eagal & Squire want to examine whether WeWork has violated any federal securities laws or committed any other unlawful business practices.
The law firm is encouraging those who have any information on these claims, purchased or acquired WeWork shares, suffered a loss, or are a long-term stockholder to contact them at no cost.
Following this announcement, WeWork shares tumbled over 5%.