TriNet Group, Inc. investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, TriNet describes itself as a leading provider of a comprehensive human resources (“HR”) solution for small to medium-sized businesses, enabling clients to outsource their HR function to one strategic partner.
The complaint alleges that during the Class Period, the defendants issued materially false and misleading statements regarding the company’s current financial condition and quarterly and year-end revenue and earnings outlook for fiscal 2014 and 2015. Specifically the complaint alleges that the defendants knew or deliberately disregarded and failed to disclose the following facts: (a) the company’s processes and methodologies for analyzing and accruing claims failed to properly account for historical claims trends; (b) the company’s forecasting process failed to properly incorporate relevant historical and current claims trends; (c) the company was experiencing growing claims trends in medical and workers compensation that negatively affected the company’s current and future business prospects; and (d) in light of the above, the company’s publicly stated financial outlook did not have a reasonable basis. According to the complaint, as a result of these misrepresentations and omissions, TriNet stock traded at artificially inflated prices during the Class Period, reaching a high of $37.88 per share on March 3, 2015.
The Class Period begins on May 5, 2014, when the company issued a press release announcing its first quarter fiscal 2014 financial results.
According to the complaint, on March 3, 2015, TriNet announced disappointing fourth quarter fiscal 2014 financial results, missing both its insurance revenue and income expectations due to an increase in large medical claims. Following this news, TriNet’s stock price declined from a close of $37.88 per share on March 3, 2015, to a close of $33.93 per share on March 4, 2015, on high trading volume.
Then, on May 5, 2015, TriNet announced its financial results for the first quarter of fiscal 2015, again missing expectations due to higher than expected workers compensation costs. Following this news, TriNet’s stock price declined, from a close of $34.43 per share on May 5, 2015, to a close of $28.76 per share on May 6, 2015, on high trading volume.
Finally, on August 3, 2015, TriNet issued a press release announcing its second quarter fiscal 2015 financial results that missed both revenue and earnings per share estimates by a wide margin due to another increase in high-volume medical claims. Following this news, the company’s stock price declined 38%, from a close of $26.69 per share on August 3, 2015, to a close of $16.33 per share on August 4, 2015, on high trading volume.
If you are a member of the class described above, you may no later than October 6, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706