A securities class action has been filed against Wheels Up Experience Inc. (UP) on behalf of persons or entities who purchased or otherwise acquired publicly traded Wheels Up securities between November 9, 2022 through March 31, 2023. This case has been filed in the USDC – E.D.N.Y.
On March 31, 2023, after market hours, Wheels Up announced on Form 10-Q/A that “a restatement of the Prior Financial Statements was necessary due to the identification of errors related to a non-cash goodwill impairment charge that should have been recognized in the Prior Financial Statements. The Company determined that a non-cash goodwill impairment charge of $62 million should have been recognized during the three months ended September 30, 2022.” In addition, the Company stated, “[a]s a result of the restatement of the Company’s financial statements and the filing of this Form 10-Q/A, management has determined that a material weakness existed in the Company’s internal control over financial reporting related to the financial statement close process for the quarter ended September 30, 2022. The identified material weakness is further described in Item 4 within this Form 10-Q/A and the Company’s remediation plan will be described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In addition, as a result of the restatement of the Company’s financial statements and the material weakness described above, management has reconsidered its assessment and now concludes that we did not maintain effective disclosure controls and procedures for the quarter ended September 30, 2022.”
On this news, the price of Wheels Up’s stock price fell $0.072 per share, or 11.37%, to close at $0.5610 per share on April 3, 2023, the next trading day.