Robbins LLP: TriNet Group, Inc. (TNET) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a securities fraud class action complaint was filed in the U.S. District Court for the Northern District of California. The complaint alleges that officers and directors of TriNet Group, Inc. (NYSE: TNET) violated the Securities Exchange Act of 1934 between May 5, 2014 and August 3, 2015, by making materially false and misleading statements about TriNet’s business prospects. TriNet provides human resources solutions for small and medium-sized businesses in the United States and Canada.
TriNet Misrepresents Its Financial Condition
According to the complaint, TriNet issued misleading statements regarding its financial condition, as well as its quarterly and year-end revenue and earnings outlook for fiscal 2014 and 2015. Specifically, TriNet’s claims analysis and forecasting processes did not account for historical claims trends. Further, the company failed to disclose that it was experiencing growing claims trends in medical and workers compensation that negatively affected its business prospects. As a result of TriNet’s misrepresentations and omissions, its stock traded at artificially inflated prices, reaching a high of $37.88 per share on March 3, 2015.
On May 5, 2014, TriNet issued a press release announcing positive outcomes for its first quarter fiscal 2014 financial results. However, on March 3, 2015, the company announced that its financial results missed revenue and income expectations due to an increase in large medical claims. Then, on May 5, 2015, TriNet officials held a conference call explaining that the workers compensation accruals negatively affected the company’s results, and that it was reducing its annual outlook by $10 million. Further, on August 3, 2015, the company reported financial results that missed both revenue and earnings per share estimates due to another increase in high-volume medical claims. Following this disclosure, TriNet’s stock price declined by $10.36 per share, or 38%, to close at $16.33 per share on August 4, 2015.
TriNet Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.