December 24, 2020 - A corrected amended complaint was filed.

December 22, 2020 - An amended complaint was filed.

July 21, 2020 - An investor in shares of Insperity, Inc. (NYSE: NSP) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Insperity, Inc. in connection with certain allegedly false and misleading statements made between February 11, 2019 through February 11, 2020.

Kingwood, TX based Insperity, Inc. provides human resources (HR) and business solutions to improve business performance for small and medium-sized businesses. Insperity, Inc. reported that its annual Total Revenue rose from over $3.3 billion in 2017 to over $3.82 billion in 2018 and that its Net Income increased from $84.4 million in 2017 to $135.41 million in 2018. On February 11, 2020, Insperity, Inc announced its fourth quarter and full year 2019 financial results. Therein, Insperity, Inc disclosed that “[t]he average profit per [worksite employee] per month declined from $272 in 2018 to $259 in 2019 on a higher than expected benefits cost trend due to elevated large healthcare claim activity.” Additionally, the Company reported that it had “recently added a new feature” in its health plan so that, beginning in 2020, Insperity will not have financial responsibility for any amount of a participant’s annual claim costs that exceed $1 million. Shares of Insperity, Inc. (NYSE: NSP) declined from $91.69 per share in February 5, 2020 to as low as $65.89 million on February 12, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of Insperity, Inc. (NYSE: NSP) common shares between February 11, 2019 through February 11, 2020,, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between February 11, 2019 through February 11, 2020, the Defendants failed to disclose, and would continue to omit, the following adverse facts pertaining to the Company’s business, operations, and financial condition, which were known to or recklessly disregarded by Defendants: (i) the Company had failed to negotiate appropriate rates with its customers for employee benefit plans and did not adequately disclose the risk of large medical claims from these plans; (ii) Insperity was experiencing an adverse trend of large medical claims; (iii) as a mitigating measure, the Company would be forced to increase the cost of its employee benefit plans, causing stunted customer growth and reduced customer retention; and (iv) the foregoing issues were reasonably likely to, and would, materially impact Insperity’s financial results.