NEW YORK, June 27, 2003 (PRIMEZONE) -- A class action Complaint has been filed in the United States District Court for the Southern District of Texas on behalf of all persons or entities who purchased or otherwise acquired Administaff, Inc. ("Administaff" or the "Company") securities (NYSE:ASF) between April 3, 2001 to July 31, 2002, both dates inclusive (the "Class Period"). Administaff, Paul J. Sarvadi, and Richard G. Rawson are the named as defendants in the Complaint.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Sharon Lee, at Rabin, Murray & Frank LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The Complaint alleges that defendants violated section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission ("SEC"). In particular, the Complaint alleges that during the Class Period defendant failed to disclose that Administaff, a personnel management company, 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. Furthermore, the Complaint alleges that defendants incorrectly matched the price and cost for health insurance on new and renewing client contracts. In an attempt to maintain Administaff's coveted status as a Fortune 500 company, defendants allegedly improperly recognized revenue, in violation of Generally Accepted Accounting Principles, by failing to net Administaff's worksite employee payroll costs against revenues. On August 1, 2002, before the market opened, defendants shocked the investing public when it announced Administaff's earnings shortfall for its second quarter ended June 30, 2002, reporting "a net loss and diluted net loss per share of $3.2 million and $0.11." In response to this, in February 2003, defendants announced that the SEC commenced an inquiry into Administaff's accounting practices with respect to revenue recognition. Pursuant to the SEC inquiry, Administaff changed its accounting policies and applied such changes retroactively. As a result of these false and misleading statements and omissions of material fact, the Complaint alleges that the price of Administaff securities was artificially inflated throughout the Class Period, causing plaintiff and other members of the Class to suffer damages.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin, Murray & Frank LLP at www.rabinlaw.com.
If you purchased or otherwise acquired Administaff securities during the Class Period described above, you may, no later than August 12, 2003, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee at Rabin, Murray & Frank LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca