Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against TriNet Group, Inc.
Oklahoma City, OK (August 11, 2015) – On August 7, 2015, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against TriNet Group, Inc. (NYSE: TNET). 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 May 5, 2014 through August 3, 2015. More specifically, this litigation was filed because Defendants knew or deliberately disregarded and failed to disclose the following facts: (i) the Company's processes and methodologies for analyzing and accruing claims failed to properly account for historical claims trends; (ii) the Company's forecasting process failed to properly incorporate relevant historical and current claims trends; and (iii) the Company was experiencing growing claims trends in medical and workers compensation that negatively affected the Company's current and future business prospects. As a result of these misrepresentations and omissions, the Company’s stock traded at artificially inflated prices during the Class Period.
Furthermore, on March 3, 2015, the Company announced disappointing fourth quarter fiscal 2014 financial results, missing both its insurance revenue and income expectations due to an increase in large medical claims. On May 5, 2015, the Company announced its financial results for the first quarter of fiscal 2015, again missing expectations due to higher than expected workers compensation costs. Then on August 3, 2015, the Company issued a press release announcing its second quarter fiscal 2015 financial results. The Company reported financial results that missed both revenue and earnings per share estimates by a wide margin due to another increase in high-volume medical claims. On this news, the Company's stock price declined to close at $26.69 per share on August 3, 2015.
Plaintiff seeks to recover damages on behalf of all TriNet Group, 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 Tuesday, October 6, 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 here to 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, August 11, 2015
by Robin Hester filed under