Barrett Business Services (Nasdaq: BBSI) has agreed to settle a shareholder class action lawsuit for $12 million. The consolidated shareholder lawsuits followed BBSI’s disclosure in the fall of 2014 that it took an $80 million pretax hit to boost its self-insured workers’ comp reserves. Subsequent revelations prompted additional amendments to the original complaint.
The settlement has the company paying roughly $3.3 million of the total settlement amount with its insurance carriers picking up $8.7 million of the tab. Company officials say they will record the $3.3 million pretax charge in the third quarter but pay it out in the fourth quarter.
The Settlement was executed on behalf of Lead Plaintiff Painters & Allied Trades District Council No. 35 Pension and Annuity Funds and named plaintiff Bakers Local No. 433 Pension Fund, on behalf of themselves and the settlement class. The settlement class includes all persons and entities who purchased or otherwise acquired Company common stock during the period beginning February 12, 2013, through March 9, 2016
The parties reached the settlement with the help of a mediator. Neither BBSI nor its named executive defendants admitted to any wrongdoing. Attorney’s fees will be paid out of the total settlement amount. The deal is still subject to court approval.