Investors Sue PEO after Reserve Increase Wipes Out Profits

Barrett Business Services' stock prices fell 59% in a single day after the professional employer organization announced an $80 million boost to its workers' compensation reserves in the third fiscal quarter wiped out five years of profits. A class-action lawsuit on behalf of investors filed Thursday in the U.S. District Court for Western Washington charges BBSI, Chief Executive Officer Michael L. Elich and Chief Financial Officer James D. Miller of making false or misleading statements and failing to disclose material facts about the company's business. "Specifically, defend...