NEW YORK, NY / ACCESSWIRE / December 5, 2022 / Pomerantz LLP is investigating claims on behalf of investors of Inspirato Incorporated ('Inspirato' or the 'Company') (NASDAQ:ISPO). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 7980.
The investigation concerns whether Inspirato and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On November 14, 2022, Inspirato disclosed in a filing with the U.S. Securities and Exchange Commission ('SEC') that '[o]n November 8, 2022, the Audit Committee (the ‘Audit Committee') of the Board of Directors of Inspirato Incorporated (the ‘Company') concluded, after discussion with the Company's management, that the Company's unaudited condensed consolidated financial statements as of and for the quarterly periods ended March 31, 2022 and June 30, 2022 (collectively, the ‘Non-Reliance Periods') included in the Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the ‘SEC') for the Non-Reliance Periods, should no longer be relied upon.
This is due to the incorrect application of Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (‘ASC 842') with respect to the assessment of right-of-use assets and liabilities, resulting in an understatement of both right-of-use assets and total lease liabilities of approximately 9% for each of the Non-Reliance Periods resulting in an understatement of total assets and total liabilities by approximately 5% for each of the Non-Reliance periods, and due to property-related and other expenses being under accrued in the first quarter, and over accrued in the second quarter, resulting in cost of revenue being understated by approximately 1% and overstated by approximately 5% in the first and second quarter, respectively. Similarly, any previously issued or filed reports, press releases, earnings releases, and investor presentations or other communications describing the Company's condensed consolidated unaudited financial statements and other related financial information covering the Non-Reliance Periods should no longer be relied upon.'
On this news, Inspirato's stock price fell $0.27 per share, or 11.89%, to close at $2.00 per share on November 14, 2022.
Then, on November 23, 2022, Inspirato disclosed receipt of 'a notice the ‘Notice') from the Listing Qualifications Department of The Nasdaq Stock Market LLC (‘Nasdaq') notifying the Company that it is not in compliance with the periodic filing requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1) (the ‘Rule') as a result of its failure to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 (the ‘Third Quarter Report') with the Securities and Exchange Commission (the ‘SEC') by the required due date. The Notice stated that, under Nasdaq rules, the Company has 60 calendar days, or until January 17, 2023, to submit a plan to regain compliance with Nasdaq's continued listing requirements.'
On this news, Inspirato's stock price fell $0.06 per share, or 3.21%, to close at $1.81 per share on November 25, 2022.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, London, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP
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