SAN DIEGO, Calif. & KINGWOOD, Texas--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Insperity, Inc. (NYSE: NSP) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between February 11, 2019 and February 11, 2020. Insperity provides human resources, employee benefits, and business solutions services to small and medium-sized businesses.
If you suffered a loss as a result of Insperity's misconduct, click here.
Insperity, Inc. (NSP) Accused of Misleading Shareholders
According to the complaint, in February 2019, Insperity reported its fourth quarter and full year 2018 financials that touted significant year-over-year growth. Then, in April 2019, Insperity lauded "record" first quarter 2019 results and raised its ambitious full-year 2019 guidance. As a result of its auspicious financial reports and the implied success of its business model, Insperirty's stock price increased dramatically during the first half of 2019. Despite its previous positive financials, in July 2019, Insperity offered disappointing third quarter 2019 guidance and reduced its full-year 2019 guidance, citing an anomalous increase in large medical claim costs. Then, in November 2019, Insperity released third quarter 2019 results that significantly missed analysts' estimates and were materially down year-over-year, once again citing the large medical claim costs that Insperity continued to assure were an anomaly. Finally, on February 11, 2020, Insperity revealed for the third time that large medical claims had negatively impacted the Company and offered a lackluster guidance for first quarter and full-year 2020. Consequently, analysts lowered their views on Insperity stock stating "after three quarters, rising jumbo claims appear to be a trend, not aberrational." On this news, Insperity's share price fell $17.44 per share, or 20%, to close at $70.71 per share.
Insperity, Inc. (NSP) Shareholders Have Options
Robbins LLP is a nationally recognized leader in shareholder rights law. To be notified if a class action against Insperity settles or to receive free alerts about companies engaged in wrongdoing, sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.