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Gibbs Law Group Investigates Potential Securities Law Violations
OAKLAND, Calif., December 02, 2021--(BUSINESS WIRE)--Shares of WeWork Inc. dropped more than 5% in extended trading on December 1, 2021 after the company disclosed in an SEC filing that it would be restating its financial results for 2020 and the first three quarters of 2021 due to a misclassification of Public Shares that led to "a material weakness in internal control over financial reporting." Gibbs Law Group is investigating a potential WeWork Securities Class Action Lawsuit on behalf of investors who lost money in WeWork (NYSE: WE).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
In October 2021, WeWork went public through a special purpose acquisition "SPAC" merger with BowX Acquisition Corp. According to a Form 8-K filing released by WeWork on December 1, 2021, a portion of the company’s previously issued Public Shares were incorrectly classified as "permanent equity" instead of "temporary equity."
After consulting with BowX’s accounting firm on November 29, 2021, WeWork concluded that the financial reports in question "should be restated to report all Public Shares as temporary equity," and that the previous reports "should no longer be relied upon."
Following the announcement of this classification error, WeWork’s stock price dropped by over 5% on December 1, 2021, causing significant harm to investors.
What Should WeWork Investors Do?
If you invested in WeWork, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether WeWork has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including "Best Lawyers in America," "Top Plaintiff Lawyers in California," "California Lawyer Attorney of the Year," "Class Action Practice Group of the Year," "Consumer Protection MVP," and "Top Women Lawyers in California."
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