The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Inspirato Incorporated (ISPO) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Inspirato Incorporated (“Inspirato” or the “Company”) (NASDAQ: ISPO) securities between May 11, 2022 and December 15, 2022, inclusive (the “Class Period”). Inspirato investors have until April 17, 2023 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On November 14, 2022, Inspirato filed a current report stating that its Audit Committee had determined that financial statements from the previous two quarters should no longer be relied upon. The Company also notified the SEC that it would be unable to timely file its third quarter 2022 quarterly report. On this news, Inspirato’s stock price fell $0.27, or 11.9%, to close at $2.00 per share on November 14, 2022, thereby injuring investors.

Then, on November 23, 2022, Inspirato disclosed that it had received a notice from the Listing Qualifications Department of NASDAQ, notifying it that it was not in compliance with filing requirements. On this news, Inspirato’s stock price fell $0.06, or 3.2%, to close at $1.81 per share on November 25, 2022, thereby further injuring investors.

Then, on December 15, 2022, after market hours, Inspirato amended its first quarter 2022 financial results, disclosing material weaknesses within the Company, including a lack of a “sufficient number of personnel with the appropriate level of knowledge and experience in the application of GAAP” and “a lack of the design and implementation of certain ITGCs related to [its] financial applications and data being adequately restricted.” On this news, Inspiratos’ stock price fell $0.10, or 6.6%, to close at $1.41 per share on December 16, 2022, thereby further injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s financial statements for first and second quarter 2022 could no longer be relied upon; (2) that these financial statements incorrectly applied accounting standards related 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 those periods; (3) the Company was not in compliance with Nasdaq listing requirements due to failure to file its third quarter 2022 quarterly report; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Inspirato securities during the Class Period, you may move the Court no later than April 17, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Inspirato securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Inspirato Incorporated (ISPO) Investors