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Insperity, Inc. Class Action Lawsuit

38 days left to seek lead plaintiff status

Case Summary

Company Name
Insperity, Inc.
Stock Symbol
NSP
Class Period
February 11, 2019 to February 11, 2020
Motion Deadline
September 19, 2020
Court
Southern District of New York

The Insperity, Inc. class action lawsuit charges Insperity and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Insperity common stock between February 11, 2019 and February 11, 2020, inclusive (the “Class Period”).  The Insperity class action lawsuit was commenced on July 21, 2020 in the Southern District of New York and is captioned Building Trades Pension Fund of Western Pennsylvania v. Insperity, Inc., No. 20-cv-05635.

Insperity provides human resource services and employee benefits to small and medium-sized business customers, including group health insurance plans.  A majority of these plans are provided by UnitedHealthcare Insurance Company.  According to Insperity, it considers the UnitedHealthcare offering to be one of the “most significant elements of [its] employee benefits package.” Under its contract with UnitedHealthcare, Insperity is liable for plan costs (primarily medical claims from its customers’ employees) that exceed the fixed premiums paid and owed to UnitedHealthcare.

The Insperity class action lawsuit alleges that defendants made materially false and/or misleading statements, as well as failed to disclose that: (a) Insperity 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; (b) Insperity was experiencing an adverse trend of large medical claims; (c) as a mitigating measure, Insperity would be forced to increase the cost of its employee benefit plans, causing stunted customer growth and reduced customer retention; and (d) the foregoing issues were reasonably likely to, and would, materially impact Insperity’s financial results.

On July 29, 2019, Insperity announced disappointing third quarter 2019 guidance and reduced its full-year 2019 guidance.  Insperity also revealed that in the second quarter of 2019, Insperity had experienced an increase in large medical claim costs, which defendants described as an anomaly that would not impact projected cost benefit trends.  On this news, the price of Insperity shares fell 25%.

Then, 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.  In doing so, Insperity attributed these results to continued large medical claim costs, which defendants again attempted to describe as a mere anomaly to assuage investor concern.  On this news, the price of Insperity shares fell an additional 34%.

Finally, on February 11, 2020, Insperity revealed that large medical claims had again impacted Insperity by significantly increasing operational costs.  Insperity further revealed that it had restructured its contract with UnitedHealthcare to no longer have financial responsibility for any medical claims over $1 million.  In addition, Insperity offered disappointingly bearish guidance for the 2020 first quarter and full year.  On this news, the price of Insperity shares declined by an additional 20%.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Insperity the common shares during the Class Period to seek appointment as lead plaintiff in the Insperity class action lawsuit.  A lead plaintiff will act on behalf of all other class members in directing the Insperity class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Insperity class action lawsuit.  An investor’s ability to share in any potential future recovery of the Insperity class action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Insperity class action lawsuit or have questions concerning your rights regarding the Insperity class action lawsuit, please provide your information here contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at malbert@rgrdlaw.com.  Lead plaintiff motions for the Insperity class action lawsuit must be filed with the court no later than September 21, 2020.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: February 11, 2019 - February 11, 2020
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