SEATTLE, Nov. 7, 2014 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm based in Seattle, WA, alerts investors that a class action lawsuit has been filed against Barrett Business Services, Inc. (Nasdaq:BBSI) ("Barrett" or "the Company"). The suit is pending in U.S. District Court for the Western District of Washington, Case No. 14-cv-5884, and investors have until January 5, 2015 to move for lead plaintiff.
The complaint covers those investors who purchased BBSI securities between February 12, 2013 and October 29, 2014. If your purchases fall in that time period, you may contact Hagens Berman Partner Reed Kathrein, who is leading the firm's investigation, by calling (510) 725-3000, emailing BBSI@hbsslaw.com or visiting http://hb-securities.com/investigations/BBSI. No class has been certified in this case. Any member of the Class who purchased shares in the relevant time period may ask the Court to appoint them as lead plaintiff.
Barrett Business Services of Vancouver, Washington--which was the subject of a September 16, 2014 analyst report accusing the Company of under-stating reserves--shocked investors, when it revealed on October 28, 2014, that BBSI had a net loss of $37.8 million for its 2014 fiscal third quarter. According to the Company, this loss was driven by an $80 million pretax increase in workers' comp reserves, which effectively wiped out the Company's past five years of pretax earnings. As a result of this news, the Company's stock declined $26.18 per share, over 58%, to close on October 29, 2014 at $18.28 per share, on unusually heavy volume.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company under accrued its self-insured workers' compensation reserves; (2) that, as a result, the Company overstated its earnings; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, Defendants' statements were materially false and misleading at all relevant times.
"It appears that the Copperfield Research report of September 16, 2014 forced management to come clean on reserves," said Hagens Berman partner Reed Kathrein. "Unfortunately, investors were kept in the dark and have lost much of their investment."
If you suffered a loss from your investment in Barrett securities purchased on or during the period from February 12, 2013 to October 29, 2014, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation. No class has yet been certified in the above action.
Whistleblowers: Persons with non-public information regarding Barrett should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. For more information, call Reed Kathrein at (510) 725-3000 or email bbsi@hbsslaw.com.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm headquartered in Seattle, Washington with offices in nine cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes can be found at www.hbsslaw.com. Read the firm's Securities Newsletter at http://www.hb-securities.com/newsletter. The firm's blog is located at www.meaningfuldisclosure.com.
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