SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of those who purchased the securities of Genworth Financial, Inc. (“Genworth” or the “Company”) (NYSE: GNW) between December 4, 2013 and July 29, 2014, inclusive (the “Class Period”).
If you purchased Genworth securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than October 20, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Genworth investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Genworth Securities Class Litigation
The action charges Genworth and certain of its senior officers with violations of the Securities Exchange Act of 1934. Genworth is a financial security company.
The complaint alleges that defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company’s long term care (“LTC”) insurance claims were increasing in number and size; (2) that Genworth would have to increase its reserves to meet these claims; and (3) that, as a result of the foregoing, the Company’s statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis.
On December 4, 2013, the first day of the alleged class period, Genworth announced that it had completed a “very intensive, broad, and deep review” of the LTC business and had developed a strategy to keep the long term business profitable. On the same day, Genworth’s Chief Executive Officer also assured investors that “we believe we have adequate long term care reserves with the margin for future deterioration[.]” The complaint alleges that the Company made several statements in the first half of 2014 relating to its LTC business, but failed to disclose that the number and size of claims in LTC business were increasing, which would in turn result in a corresponding increase in Genworth’s claim reserves for the long term care segment.
On July 29, 2014, the Company announced disappointing LTC net operating income of $6 million for the second quarter of 2014, down from $46 million the prior quarter. As a result, Genworth announced that it planned to conduct a review of its claims reserves for this segment and may be required to increase its reserves. On this news, the Company’s stock dropped $2.28 per share, or approximately 14 percent, from a previous closing price of $16.26 on July 28, 2014, to close at $13.98 per share on July 29, 2014.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for eleven years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs' bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have also named Lieff Cabraser as a “Law Firm of the Year” each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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