Insperity Defeats Investors’ Large Health Claim Risk Allegations

Insperity Inc. is free of allegations it misled investors about the risk of an increase in large health insurance claims, after a federal judge in New York ruled the complaint failed to allege intentionally false or misleading statements.

Investors say the human resources services company didn’t tell them it lacked timely access to claims data as large health-care claims increased. Their would-be class complaint fell short of alleging any false or misleading statements or raising an inference that Insperity acted intentionally or severely recklessly, the U.S. District Court for the Southern District of New York said.

The investors challenged ...