LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that a class action lawsuit has been filed on behalf of investors who purchased Maximus, Inc. (“Maximus” or the “Company”) (NYSE: MMS) securities between October 30, 2014 and February 3, 2016, inclusive (the “Class Period”). Maximus investors have until October 6, 2017 to file a lead plaintiff motion. To obtain information or participate in the class action, please visit the Maximus page on our website at www.glancylaw.com.
The Complaint filed in this class action alleges that during the Class Period, Maximus assured investors that they were meeting targets concerning the Health Assessment Advisory Service (HAAS) contract. A contract aimed to carry out health and disability benefits over a period of three and a half years.
Specifically, the complaint alleges that during the Class Period, Maximus made false and/or misleading statements and/or failed to disclose that: (i) in obtaining the HAAS contract, Maximus set an unattainable target number of healthcare professionals to recruit and an unattainable target number of assessments; (ii) throughout the HAAS contract, Maximus was struggling to recruit, train and ramp-up new health care staff to perform the assessments; (iii) the inability to meet its target number of healthcare recruits and target number of assessments, meant Maximus would not earn the performance based incentive fees from the HAAS contract; and (iv) consequently, Maximus’ statements about the Company, its financial condition, and the outlook for its business, including statements about the HAAS contract and the amount of revenue the Company expected the contract to contribute, lacked a reasonable basis when made.
Then on February 4, 2016, Maximus shocked investors and issued a press release announcing its earnings for the first quarter of fiscal 2016, again missing expectations and confirming its inability to meet HAAS contract assessment targets. The reduced earnings were based in part on weak performance of the HAAS contract, which “tempered operating margin.”
On this news, shares of Maximus common stock dropped $5.53 per share, thereby damaging investors.
Follow us for updates on Twitter: twitter.com/GPM_LLP.
If you purchased shares of Maximus during the Class Period you may move the Court no later than October 6, 2017 to ask the Court to appoint you as lead plaintiff in this class action lawsuit. 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 action lawsuit. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by e-mail to firstname.lastname@example.org, or visit our website at www.glancylaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.