New York, New York--(Newsfile Corp. - June 18, 2024) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Sharecare Inc. ("Sharecare" or "the Company") (NASDAQ: SHCR) and certain of its officers.
Class Definition:
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Sharecare securities between May 10, 2023 and March 28, 2024, inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/SHCR.
Case Details:
According to the Complaint, in 2010 Sharecare launched an online health and wellness platform designed to help people, patients, providers, employers, health plans, government organizations, and communities connect to health management tools to drive engagement, sustain participation, increase satisfaction, reduce costs, and improve outcomes.
The Complaint alleges that throughout the Class Period Sharecare made materially false and/or misleading statements because the Company misrepresented and failed to disclose the following adverse facts pertaining to the Company's business, operations, and prospects, which were known to Defendants or recklessly disregarded by them. Specifically, the Company made false and/or misleading statements and/or failed to disclose that:
(1) Sharecare lacked adequate internal controls; and
(2) as a result, Sharecare's statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all times.
According to the Complaint, Sharecare filed with the SEC its 2023 quarterly Form 10-Q reports on May 10, August 9, and November 9. In each of these reports, Sharecare's Chief Executive Officer (CEO) and Chief Financial Officer (CFO) stated that the Company's disclosure controls and procedures required by Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (Exchange Act) were effective.
Then, according to the Complaint, on March 29, 2024, Sharecare filed with the SEC its Annual Report on Form 10-K for the year ended December 31, 2023. In this report, Sharecare's CEO and CFO disclosed that the Company's disclosure controls and procedures required by Rules 13a-15(e) and 15d-15(e) of the Exchange Act were not effective due to a material weakness in internal control over financial reporting. Specifically, Sharecare's internal controls were inadequate regarding "revenue recognition evaluation resulting from a change in services provided to a customer, due to untimely communication between cross-functional teams."
On this news, Sharecare's stock price fell by $0.2171, or 28.28% to close at $0.5504 on April 1, 2024, on unusually heavy trading volume.
Therefore, according to the Complaint, as a result of Sharecare's wrongful acts and omissions, and the precipitous decline in the market value of the Company's common shares, investors have suffered significant losses and damages.
What's Next?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/SHCR or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in Sharecare you have until June 18, 2024, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman:
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller,
332-239-2660 | info@bgandg.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/206481
