Maximus, Inc. investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Maximus provides business process services to government health and human services agencies in the United States, Australia, Canada, Saudi Arabia, and the United Kingdom (“UK”).
On October 29, 2014, the UK Department for Work and Pensions (“DWP”) awarded Maximus a significant contract to carry out health and disability benefits, called the Health Assessment Advisory Service (“HAAS”), over a period of three and a half years. Maximus would be paid approximately £595 million (US $900 million) although the exact amount depended on how close Maximus would get to its target of a million assessments per year. If the firm underperformed, it would earn less; if it exceeded its target, it would earn more. Beginning on October 30, 2014, the defendants assured investors that Maximus was meeting targets concerning the HAAS contract.
The complaint alleges that, on August 7, 2015 Maximus announced its results for the third quarter of 2015, including, “some start-up challenges” with the HAAS contract. Following this news, Maximus’ stock price declined by $9.57 per share, over two trading sessions, or 13.8 percent.
Then, before the market opened on November 12, 2015, Maximus released downbeat results for the fourth quarter of 2015, including news that the HAAS contract delivered an operating loss of $4 million. Following this news, Maximus’ stock price declined $15.03 per share that day, or 21.9 percent.
Finally on February 4, 2016, Maximus issued a press release announcing its earnings for the first quarter of fiscal 2016, again missing expectations and confirming its inability to meet HAAS contract assessment targets.
Following this news, shares of Maximus common stock dropped $5.53 per share over two trading sessions, or 10.5 percent.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) in obtaining the HAAS contract, Maximus set an unattainable target number of healthcare professionals to recruit and an unattainable target number of assessments; (ii) throughout the HAAS contract, Maximus was struggling to recruit, train and ramp-up new health care staff to perform the assessments; (iii) the inability to meet its target number of healthcare recruits and target number of assessments, meant Maximus would not earn the performance-based incentive fees from the HAAS contract; and (iv) consequently, the 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.
If you are a member of the class described above, you may no later than October 6, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com