SAN DIEGO, Aug. 7, 2015 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/trinet/) today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of TriNet Group, Inc. ("TriNet") (NYSE: TNET) common stock during the period between May 5, 2014 and August 3, 2015 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/trinet/. 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.
The complaint charges TriNet and certain of its officers and directors with violations of the Securities Exchange Act of 1934. TriNet is a provider of a comprehensive human resources solution for small to medium-sized businesses, enabling clients to outsource their human resources, or HR, function to one strategic partner. The Company's HR solutions include services such as payroll processing, human capital consulting, employment law compliance and employee benefits.
The complaint alleges that during the Class Period, 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, defendants' statements during the Class Period were each false and misleading, because 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; and (c) 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, TriNet stock traded at artificially inflated prices during the Class Period, reaching a high of $37.88 per share on March 3, 2015.
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. 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. 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 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.
Plaintiff seeks to recover damages on behalf of all purchasers of TriNet common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com/cases/trinet/ for more information.
SOURCE Robbins Geller Rudman & Dowd LLP