PR Newswire | Aug 20, 2020 01:00PM EDT

Looming Deadline in the Class Action Lawsuit Against Insperity, Inc. (NSP)

08/20 12:00 CDT

Deadline Reminder: The Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Insperity, Inc. (NSP) BENSALEM, Pa., Aug. 20, 2020

BENSALEM, Pa., Aug. 20, 2020 /PRNewswire/ -- Law Offices of Howard G. Smith reminds investors of the upcoming September 21, 2020deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Insperity, Inc. ("Insperity" or the "Company") (NYSE: NSP) common stock between February 11, 2019, and February 11, 2020, inclusive (the "Class Period").

Investors suffering losses on their Insperity investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

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.

If you purchased or otherwise acquired Insperity common stock, you may move the Court no later than September 21, 2020,to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action 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. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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SOURCE Law Offices of Howard G. Smith