DEADLINE ALERT: Rigrodsky & Long, P.A. Reminds Shareholders Of Insperity, Inc. Of Upcoming Deadline

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 [email protected], 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.

The truth about Insperity’s deceptive business practices was revealed through a series of disclosures.  First, on July 29, 2019, Insperity released its second quarter 2019 financial results.  Despite delivering year-over-year growth and meeting analysts’ estimates, the Company offered disappointing third quarter 2019 guidance and reduced its full-year 2019 guidance.  Further, Defendants revealed that in the second quarter 2019, Insperity had experienced an increase in large medical claim costs, which Defendants described as an anomaly which would not impact projected cost benefit trends.  On this news, Insperity shares fell $35.74 per share, or 25%.

Second, on November 4, 2019, Insperity released its third quarter 2019 financial results, which substantially missed analysts’ estimates and were materially down year-over-year.  In addition, Insperity materially reduced its full-year 2019 guidance.  Defendants attributed these results to continued large medical claim costs, which they again attempted to describe as a mere anomaly to assuage investor concern.  On this news, Insperity shares fell by $36.29 per share, or 34%.

Finally, on February 11, 2020, after the close of trading, Insperity released its fourth quarter and full-year 2019 financial results.  On this date, Insperity revealed that, for the third quarter in a row, large medical claims had again impacted the Company.  Further, the Company stated that it had restructured its contract with UnitedHealthcare to no longer have financial responsibility for any medical claims over $1 million.  Insperity also offered disappointingly bearish guidance for the first quarter and full-year 2020.

On this news, shares of Insperity fell almost 20%, closing at $71.64 per share on February 12, 2020, on heavy trading volume.

A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

Rigrodsky & Long, P.A., with offices in Delaware and New York, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.

Attorney advertising.  Prior results do not guarantee a similar outcome.

CONTACT: 

Rigrodsky & Long, P.A.
Seth D. Rigrodsky
Timothy J. MacFall
(888) 969-4242
(516) 683-3516
Fax: (302) 654-7530
[email protected]
http://www.rigrodskylong.com