The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of MAXIMUS, Inc. (NYSE: MMS) who purchased shares between October 30, 2014 and February 3, 2016. The action, which was filed in the United States District Court for the Eastern District of Virginia, alleges that the Company violated federal securities laws.
In particular, the complaint alleges 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, Defendants’ statements about the Company, its financial condition, and the outlook for its business, lacked a reasonable basis when made.
On October 29, 2014, the UK Department for Work and Pensions awarded MAXIMUS a significant contract to carry out health and disability benefits for over a period of three and a half years, called the Health Assessment Advisory Service ("HAAS") contract. On August 7, 2015, Maximus revealed its results for the third quarter of 2015, and said that it had encountered “some start-up challenges” with the HAAS contract. Then on November 12, 2015, Maximus 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. Then on February 4, 2016, Maximus announced its earnings for the first quarter of 2016, again missing expectations and confirming its inability to meet HAAS contract assessment targets.
Shareholders have until October 6, 2017 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
Please fill out the form to learn more