BBSI Reaches Agreement to Settle Shareholder Lawsuit
VANCOUVER, WA -- (Marketwired) -- 10/27/16 -- Barrett Business Services, Inc. (BBSI) (NASDAQ: BBSI), a leading provider of business management solutions, has reached an agreement to settle a lawsuit filed as a class action on behalf of shareholders in November 2014.
The settlement, subject to approval by the U.S. District Court for the Western District of Washington, calls for the payment of $12 million, with approximately $8.7 million to be paid by the Company's insurance carriers and $3.3 million paid by the Company.
In connection with the proposed settlement, BBSI expects to record a pre-tax charge of approximately $3.3 million in the third quarter of 2016. The Company will pay for the settlement with available resources and expects the payment to occur in the fourth quarter of 2016.
"The board of directors has chosen to settle this case to avoid the cost and distraction associated with prolonged litigation," said Anthony Meeker, BBSI's chairman. "More importantly, putting this lawsuit behind us allows the Company to focus on our core business while positioning the organization for future growth."
The settlement covers shareholders who purchased or acquired shares of BBSI's common stock beginning February 12, 2013 through March 9, 2016.
For additional information about the settlement, please see the Company's current report on form 8-K filed with the Securities and Exchange Commission on October 27, 2016, and available on the Company's website.
BBSI (NASDAQ: BBSI) is a leading provider of business management solutions, combining human resource outsourcing and professional management consulting to create a unique operational platform that differentiates it from competitors. The Company's integrated platform is built upon expertise in payroll processing, employee benefits, workers' compensation coverage, risk management and workplace safety programs, and human resource administration. BBSI's partnerships help businesses of all sizes improve the efficiency of their operations. The Company works with more than 4,100 clients across all lines of business in 22 states. For more information, please visit www.barrettbusiness.com.
Statements in this release about future plans, expectations or performance are forward-looking statements which involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Important factors that may affect the Company's future prospects are described in the Company's 2015 Annual Report on Form 10-K.
Source: Barrett Business Services, Inc.
Released October 27, 2016