Lawsuit Overview
June 14, 2019 - The Court of Appeals affirmed the court's order to dismiss.
September 24, 2018 - A notice appealing the courts's decision to dismiss was filed.
August 27, 2018 - The court granted the defendants' motion to dismiss with prejudice.
January 8, 2018 - A motion to dismiss the amended consolidated complaint was filed.
December 4, 2017 - An amended consolidated complaint was filed.
August 4, 2017 - An investor in shares of MAXIMUS Inc (NYSE: MMS) filed a lawsuit in the U.S. District Court for the Eastern District of Virginia over alleged violations of Federal Securities Laws by MAXIMUS Inc in connection with certain allegedly false and misleading statements made between October 30, 2014 and February 3, 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of MAXIMUS Inc (NYSE: MMS) common shares between October 30, 2014 and February 3, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between October 30, 2014 and February 3, 2016, the defendants made false and/or misleading statements and/or failed to disclose that in obtaining the HAAS contract, MAXIMUS Inc set an unattainable target number of healthcare professionals to recruit and an unattainable target number of assessments, that throughout the HAAS contract, MAXIMUS Inc was struggling to recruit, train and ramp-up new health care staff to perform the assessments, that the inability to meet its target number of healthcare recruits and target number of assessments, meant MAXIMUS Inc would not earn the performance-based incentive fees from the HAAS contract, and that consequently, defendants’ statements about the Company, its financial condition, and the outlook for its business, including statements about the HAAS contract and the amount of revenue the Company expected the contract to contribute, lacked a reasonable basis when made.
MAXIMUS Inc reported that its Total Revenue rose from over $2.09 billion for the 12 months period that ended on September 30, 2015 to over $2.4 billion for the 12 months period that ended on September 30, 2016 and that its Net Income for those respective time frames increased from $157.77 million to $178.36 million.
On August 7, 2015, MAXIMUS Inc revealed its results for the third quarter of 2015, and said that it had encountered some start-up challenges with the HAAS contract.
On November 12, 2015, before market-hours, MAXIMUS Inc revealed its financial and operating results for the fourth quarter of 2015, including news that the HAAS contract had delivered an operating loss of $4 million.
On February 4, 2016, MAXIMUS Inc announced its earnings for the first quarter of 2016, again missing expectations and confirming its inability to meet HAAS contract assessment targets. MAXIMUS Inc said that its Health Services Segment's operating margin dropped from 15.5% in the previous year to 9.2% for 2016's first quarter, partially due to weak performance of the HAAS contract, which tempered operating margin.
Shares of MAXIMUS Inc (NYSE: MMS) closed on August 7, 2017 at $61.50 per share.