Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Barrett Business Services, Inc.
Oklahoma City, OK (November 11, 2014) – On November 6, 2014, a securities class action lawsuit was filed in the United States District Court for the Western District of Washington against Barrett Business Services, Inc. (NASDAQ: BBSI). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 12, 2013 through October 29, 2014. More specifically, this litigation was filed because the Company failed to disclose material adverse facts about the Company’s operations, financial performance and prospects. The Complaint alleges that the Company made false and/or misleading statements and/or failed to disclose that: (1) the Company under accrued its self-insured workers' compensation reserves; (2) as a result, the Company overstated its earnings; (3) the Company lacked adequate internal and financial controls; and (4), as a result of the foregoing, defendants' statements were materially false and misleading at all relevant times.
On October 28, 2014, BBSI disclosed that it had a $37.8 million net loss for its 2014 fiscal third quarter. The Company attributed the loss to an $80 million pretax increase in workers' compensation reserves, which effectively wiped out Barrett Business Services' pretax earnings for the past five years. As a result of this news, the Company's stock declined $26.18 per share, to close at $18.28 per share on October 29, 2014.
Plaintiff seeks to recover damages on behalf of all Barrett Business Services, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, January 5, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click hereto obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Tue, November 11, 2014
by Robin Hester filed under