MILWAUKEE, June 25, 2003 (PRIMEZONE) -- The Law Firm of Ademi & O'Reilly, LLP announced that on June 13, 2003 it filed a class action lawsuit in the United States District Court for the Southern District of Texas, Houston Division, located at 515 Rusk Avenue, Houston, TX 77002, on behalf of purchasers of Administaff, Inc. (NYSE:ASF) ("Administaff" or the "Company") publicly traded securities during the period between April 3, 2001 to July 31, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on our website at http://www.ademilaw.com/cases/Administaff.pdf.
If you bought Administaff publicly traded securities between April 3, 2001 to July 31, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than August 12, 2003. If you are a member of this class, you can join this class action online at http://www.ademilaw.com/cases/Administaff.php. Any member of the purported class may move the Court to serve as lead plaintiff through Ademi & O'Reilly or other counsel of their choice, or may choose to do nothing and remain an absent class member.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between April 3, 2001 and July 31, 2002, thereby artificially inflating the price of Administaff securities. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that Administaff had inadequate and deficient pricing and billing systems and was incorrectly calibrating pricing for clients that experienced declines in average payroll cost per worksite employee; (b) that Administaff was incorrectly matching the price and cost for health insurance on new and renewing client contracts; and (c) that, in violation of Generally Accepted Accounting Practices and in order to retain its coveted place on the Fortune 500 listing, Administaff was improperly recognizing revenue by failing to net Administaff's worksite employee payroll costs against revenues.
On August 1, 2002, before the open of trading, Administaff shocked the investing public when it released its financial and operational results for the second quarter ended June 30, 2002, reporting "a net loss and diluted net loss per share of $3.2 million and $0.11" as compared to Thomson Financial/First Call estimates of $0.04 earnings per share. Market reaction was swift and negative, with Administaff stock falling from a close of $7.50 on July 31, 2002 to a close of $4.20 on August 1, 2002, or a single-day decline of 44% in heavy trading. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.ademilaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca