Insperity Deadline Alert: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Insperity, Inc. To Contact The Firm

NEW YORK - (NewMediaWire) - July 24, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Insperity, Inc. (“Insperity” or the “Company”) (NYSE:NSP) of the September 21, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in Insperity stock or options between February 11, 2019 and February 11, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/NSPThere is no cost or obligation to you.

You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.  

CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017

Attn:  Richard Gonnello, Esq.

rgonnello@faruqilaw.com

Telephone: (877) 247-4292 or (212) 983-9330

The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Insperity common stock between February 11, 2019 and February 11, 2020 (the “Class Period”).  The case, Building Trades Pension Fund of Western Pennsylvania v. Insperity, Inc. et al., No. 1:20-cv-05635 was filed on July 21, 2020.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) 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) Insperity was experiencing an adverse trend of large medical claims; (3) 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) the foregoing issues were reasonably likely to, and would, materially impact Insperity’s financial results.

Specifically, 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, the Company's stock price fell from $144.63 per share on July 26, 2019 to $108.89 per share on July 29, 2019: a $35.74 or 24.71% drop.

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, the Company's stock price fell from $107.67 per share on November 1, 2019 to $71.38 per share on November 4, 2019: a $36.29 or 33.70% drop.

Finally, on February 11, 2020, after the close of trading, Insperity released its fourth quarter and full-year 2019 financial results. While the Company’s results were in line with its (repeatedly downgraded) financial forecasts, Insperity revealed that large medical claims had again impacted the Company by significantly increasing operational costs. 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. Finally, Insperity offered disappointingly bearish guidance for the first quarter and full-year 2020. Analysts immediately lowered their views on Insperity stock. For example, analysts at Baird cut their rating from “Outperform” to “Neutral” stating that “after three quarters, rising jumbo claims appear to be a trend, not aberrational.” 

On this news, the Company's stock price fell from $89.08 per share on February 11, 2020 to $71.64 per share on February 12, 2020: a $17.44 or 19.38% drop.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. 

Faruqi & Faruqi, LLP also encourages anyone with information regarding Insperity’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

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