SHAREHOLDER ALERT: Bronstein, Gewirtz & Grossman, LLC Announces Investigation of MAXIMUS, Inc. (MMS)
NEW YORK, Aug. 7, 2017 /PRNewswire/ — Attorney Advertising–Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of MAXIMUS, Inc. («Maximus» or the «Company») (NYSE: MMS). Such investors are encouraged to obtain additional information and assist the investigation by visiting the firm’s site: www.bgandg.com/mms.
The investigation concerns whether Maximus and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
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 3.5 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. Following this news, Maximus stock dropped $9.57 per share, or 13.8 %, over two trading days. Then on November 12, 2015, before market-hours, 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. Following this news, Maximus stock dropped $15.03 per share, or 21.9 %. Finally, 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. Maximus 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.» Following this news, Maximus stock dropped $5.53 per share over two trading days, or 10.5%, losing roughly $356 million in market capitalization.
If you are aware of any facts relating to this investigation, or purchased shares of Maximus, you can assist this investigation by visiting the firm’s site: www.bgandg.com/mms. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]
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