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WILMINGTON, Del., Aug. 26, 2020 (GLOBE NEWSWIRE) -- Rigrodsky & Long, P.A. reminds shareholders of Insperity, Inc. (“Insperity” or the “Company”) (NYSE: NSP) of an upcoming deadline involving a securities fraud class action lawsuit commenced against the Company.
A complaint was filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of Insperity between February 11, 2019 and February 11, 2020, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”). If you wish to serve as lead plaintiff, you must move the Court no later than September 21, 2020.
If you purchased shares of Insperity during the Class Period, or purchased shares prior to the Class Period and still hold Insperity, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 210, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at info@rl-legal.com, or at http://rigrodskylong.com/cases-insperity-inc.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (i) the Company had failed to negotiate appropriate rates with its customers for employee benefit plans and did not adequately disclose the risk of large medical claims from these plans; (ii) Insperity was experiencing an adverse trend of large medical claims; (iii) as a mitigating measure, the Company would be forced to increase the cost of its employee benefit plans, causing stunted customer growth and reduced customer retention; and (iv) the foregoing issues were reasonably likely to, and would, materially impact Insperity’s financial results. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on February 11, 2019, the start of the Class Period, Insperity reported its fourth quarter and full-year 2018 financial results, which results were up significantly year-over-year. Additionally the Company offered bullish full-year 2019 guidance. Likewise, on April 29, 2019, Insperity reported “record” first quarter results, and raised its full-year 2019 guidance. Therefore, at least according to Defendants’ narrative, Insperity was poised to deliver a record year of growth as a result of the Company’s successful business model. As a result, Insperity’s stock price dramatically increased during the first half of 2019.