LOS ANGELES, July 8, 2003 (PRIMEZONE) -- Notice is hereby given that Glancy & Binkow LLP commenced a Class Action lawsuit in the United States District Court for the Southern District of Texas on behalf of a class (the "Class") consisting of all persons who purchased securities of Administaff, Inc. ("Administaff" or the Company") (NYSE:ASF) between May 2, 2001 and July 31, 2002, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy & Binkow LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9161 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The complaint charges Administaff and certain of its executive officers with violations of federal securities laws. Plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements concerning the Company's financial performance caused Administaff's stock price to become artificially inflated, inflicting damages on investors. Administaff is a professional employer organization that provides a comprehensive personnel management system encompassing a broad range of services, including benefits and payroll administration, health and workers' compensation insurance programs, personnel records management, employer liability management, employee recruiting and selection and employee performance management.
Plaintiff alleges that the statements disseminated by the defendants during the Class Period misrepresented or failed to disclose that: (a) Administaff was improperly calculating pricing on worksite employees for employers with declining costs; (b) Administaff's accounting did not match costs with pricing on healthcare insurance, such that future results would be adversely affected by the inadequate pricing; and (c) Administaff was improperly grossing up revenues with worksite employee payroll costs. When Administaff's true financial performance was revealed on August 1, 2002, the Company's stock declined to $4.20 per share, compared to the Class Period high of $36.48. The stock has never recovered to Class Period levels and continues to trade in the $9 per share range.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than August 12, 2003, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca