Energy News / Shareholders Foundation, Inc.

Barrett Business Services, Inc. (NASDAQ:BBSI) Investor Alert: Investigation over Possible Wrongdoing

Via: ReleaseWire

Updated 8:00 AM CDT, Wed, June 03,2015

An investigation on behalf of investors in Barrett Business Services, Inc. (NASDAQ:BBSI) shares over potential wrongdoing at Barrett Business Services was announced and NASDAQ:BBSI stockholders should contact the Shareholders Foundation.

San Diego, CA -- (ReleaseWire) -- 06/03/2015 -- An investigation on behalf of current long-term investors in shares of Barrett Business Services, Inc. (NASDAQ:BBSI) shares was announced over potential breaches of fiduciary duties by certain officers and directors at Barrett Business Services, Inc.

Investors who purchased shares of Barrett Business Services, Inc. (NASDAQ:BBSI) in January 2013 or earlier and currently hold any of those NASDAQ:BBSI shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm concerns whether certain Barrett Business Services officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.

On October 28, 2014, Barrett Business Services, Inc. announced its third quarter 2014 financial results. Barrett Business Services, Inc. reported that its third quarter Revenue rose from $147.97 million in 2013 to $174.96 million in 2014, while its third quarter Net Income of $8.99 million in 2013 turned into a third quarter Net Loss of $37.81 million in 2014. According to Barrett Business Services, Inc, this loss was driven by an $80 million pretax increase in workers' compensation reserves, which effectively wiped out the Company's past five years of pretax earnings. Shares of Barrett Business Services, Inc. (NASDAQ:BBSI) declined to as low as $18.25 per share on October 29, 2014.

Following the announcement of the charge for increased workers compensation reserves expense a lawsuit was filed on November 6, 2014, against Barrett Business Services, Inc. over alleged securities laws violations. The plaintiff claims that the defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that Barrett Business Services Inc under accrued its self-insured workers' compensation reserves, that as a result, Barrett Business Services Inc overstated its earnings, that Barrett Business Services Inc lacked adequate internal and financial controls, and that, as a result of the foregoing, defendants' statements were materially false and misleading at all relevant times.

On May 11, 2015, Barrett Business Services, Inc disclosed in a filing with the Securities and Exchange Commission that it has been informed by staff at the San Francisco office of the Division of Enforcement of the Securities and Exchange Commission that it has obtained a Formal Order of Investigation in connection with its review of the Company's accounting practices with regard to its workers' compensation reserves.

Those who purchased shares of Barrett Business Services, Inc. (NASDAQ:BBSI) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

For more information on this press release visit:
http://www.releasewire.com/press-releases/barrett-business-services-inc-nasdaqbbsi-investor-alert-investigation-over-possible-wrongdoing-602042.htm

Media Relations Contact
Michael Daniels
858-779-1554
Email: Click to Email Michael Daniels
Web: http://www.ShareholdersFoundation.com