NEW YORK, Nov. 14, 2014 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been filed in the United States District Court for the Western District of Washington on behalf of investors who acquired Barrett Business Systems, Inc. ("Barrett" or the "Company") (Nasdaq:BBSI) securities during the period from February 12, 2013 through October 29, 2014 (the "Class Period"), inclusive.
On September 16, 2014, Copperfield Research published a report claiming that the Company "may be required to recognize a material charge to substantially increase its loss reserves." On this news, Barrett common stock declined $8.95 per share or more than 15%, to close at $48.69 per share.
These allegations were subsequently confirmed, when on October 28, 2014, Barrett reported a net loss of $37.8 million for its third quarter ended September 30, 2014, driven by an $80 million pretax increase in workers' compensation reserves, erasing Barrett's past five years of pretax earnings. This revelation was stark contrast to Barrett's earlier representations that "based upon facts and other trends associated with the Company's historical universe of claims data, its workers' compensation claims reserves were 'reasonable and objective.'" On this materially negative news, Barrett common stock declined an additional $26.18 per share or nearly 59%, to close at $18.28 per share on October 29, 2014, representing a market capitalization loss of close to $190 million.
If you purchased Barrett Business Systems, Inc. securities during the Class Period, you may move to be appointed as lead plaintiff by Monday, January 5, 2015. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has over 70 attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please contact Wolf Haldenstein Adler Freeman & Herz LLP immediately by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com. All e-mail correspondence should make reference to the "Barrett Investigation."
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