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 Insperity, Inc. ("Insperity" or the "Company") (NYSE: NSP) common stock between February 11, 2019 and February 11, 2020, inclusive (the "Class Period"). Insperity investors have until September 21, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On February 11, 2020, after the market closed, Insperity issued a press release announcing its fourth quarter and full year 2019 financial results. Therein, Insperity disclosed that "[t]he average profit per [worksite employee] per month declined from $272 in 2018 to $259 in 2019 on a higher than expected benefits cost trend due to elevated large healthcare claim activity." Additionally, the Company reported that it had "recently added a new feature" in its health plan so that, beginning in 2020, Insperity will not have financial responsibility for any amount of a participant’s annual claim costs that exceed $1 million.
On this news, Insperity’s share price fell $17.44 per share, or over 19%, to close at $71.64 per share on February 12, 2020, at unusually heavy trading volume.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that 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; (2) that Insperity was experiencing an adverse trend of large medical claims; (3) that 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 (4) that the foregoing issues were reasonably likely to, and would, materially impact Insperity’s financial results.
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If you purchased Insperity common stock during the Class Period, you may move the Court no later than September 21, 2020 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 Insperity 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 firstname.lastname@example.org, 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.
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