NEW YORK, Nov. 17, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Barrett Business Services, Inc. ("Barrett" or the "Company")(Nasdaq:BBSI) and certain of its officers. The class action, filed in United States District Court, Western District of Washington, at Tacoma, and docketed under 14-cv-05912, is on behalf of a class consisting of all persons or entities who purchased Barrett securities between February 12, 2013 and October 29, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Barrett securities during the Class Period, you have until January 5, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Barrett is a provider of business management solutions, combining human resource outsourcing and professional management consulting for its operational platform. The Company's integrated platform is built upon its purported expertise in payroll processing, employee benefits, workers' compensation coverage, risk management and workplace safety programs, and human resource administration.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) that the Company under accrued its self-insured workers' compensation reserves; (2) that, as a result, the Company overstated its earnings; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, Defendants' statements were materially false and misleading at all relevant times.
On October 28, 2014, after the market closed, BBSI revealed that in the third quarter of 2014, the Company recorded an additional increase to its self-insured workers' compensation reserve of $80 million, or $47.9 million after tax, which effectively wiped out the Company's past five years of pretax earnings. According to the Company, the increase represented approximately 38% of the Company's total workers' compensation reserve, bringing the liability up to $208.3 million at September 30, 2014. Taking into account the effect of this expense, the Company reported a net loss in the third quarter of 2014 of $37.8 million compared to net income of $9 million in the year-ago quarter.
On this news, shares of Barrett fell $26.18 or almost 59%, on unusually heavy volume, to close at $18.28 on October 29, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.