A securities class action has been filed against Sharecare, Inc. (SHCR) on behalf of persons or entities who purchased or otherwise acquired publicly traded Sharecare securities between May 10, 2023 through March 28, 2024.  This case has been filed in the USDC – C.D.CA.

On March 29, 2024, Sharecare filed with the SEC its annual report on Form 10-K for the 2023 fiscal year. In this annual report, Sharecare disclosed that “[i]n connection with the audit of our financial statements as of and for the year ended December 31, 2023, we identified a material weakness in our internal control over financial reporting. As of December 31, 2023, the Company did not maintain adequate internal controls with respect to its revenue recognition evaluation resulting from a change in services provided to a customer, due to untimely communication between cross-functional teams. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our financial statements will not be prevented or detected on a timely basis.”

On this news, Sharecare’s stock fell $0.21 per share, or 28.3%, to close at $0.55 per share on April 1, 2024, the next trading day.