According to the complaint, throughout the Class Period, Sharecare made materially false and/or misleading statements and/or failed to disclose that: (1) Sharecare lacked adequate internal controls and; (2) as a result, the defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all times.

The truth was disclosed on March 29, 2024, when Sharecare filed with the SEC its annual report on a Form 10-K for the 2023 fiscal year. In this annual report, Sharecare disclosed that it had identified a material weakness in its internal control over financial reporting, and that “[a]s 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.”

On this news, the price of Sharecare stock declined by $0.21 per share, or 28.28%, to close at $0.55 on April 1, 2024.

Investors who purchased or acquired Sharecare securities between May 10, 2023 and March 28, 2024, may no later than June 18, 2024, seek to be appointed as a lead plaintiff representative of the class.