NEW YORK, Aug. 7, 2017 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of MAXIMUS, Inc. ("MAXIMUS" or the "Company") (NYSE: MMS). Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, Ext. 9980.
The investigation concerns whether MAXIMUS and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On October 29, 2014, the UK Department for Work and Pensions awarded Maximus a significant contract to carry out health and disability benefits, called the Health Assessment Advisory Service ("HAAS") contract, over a period of three and a half years. On August 7, 2015, Maximus announced its results for the third quarter of 2015, and advised shareholders that the Company had encountered "some start-up challenges" with the HAAS contract. On this news, Maximus's share price fell $9.57, or 13.8 %, over two trading sessions.
On November 12, 2015, before the market opened, Maximus reported the Company's financial and operating results for the fourth quarter of 2015, including news that the HAAS contract had delivered an operating loss of $4 million. On this news, Maximus's share price fell $15.03, or 21.9 %.
Finally, on February 4, 2016, Maximus issued a press release announcing its earnings for the first quarter of 2016, again missing expectations and confirming the Company's inability to meet HAAS contract assessment targets. Maximus reported that its Health Services Segment's operating margin fell from 15.5% in the prior year to 9.2% for the first quarter of 2016. The reduced earnings were based in part on weak performance of the HAAS contract, which "tempered operating margin." On this news, shares of Maximus common stock dropped $5.53, or 10.5%, over two trading sessions, wiping out approximately $356 million in market capitalization.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, 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 80 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
Robert S. Willoughby
SOURCE Pomerantz LLP