SAN DIEGO & CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Unum Group (NYSE: UNM) filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between October 27, 2016 and May 1, 2018. Unum, together with its subsidiaries, provides financial protection benefit solutions in the United States, the United Kingdom, and internationally.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/unum-group-july-2018-2/
Unum Accused of Misleading Investors About Its Long-Term Care Reserves
According to the complaint, Unum routinely misrepresented the expected range of its long-term care loss ratio. In so doing, Unum downplayed the likelihood that the company would experience excessive losses and need to take a crippling charge to its reserves. After Unum took modest reserve charges in 2011 and 2014, Unum officials reassured investors that the company's underlying assumptions were unlikely to lead to future losses and expected an 85% to 90% long-term loss ratio. Unum stunned investors on May 1, 2018, when the company reported that its 2018 loss ratio for its long-term care business had ballooned to 96.6%, and again the next day when Unum admitted that it expected volatitlity in its long-term care business to continue. On this news, Unum's stock fell nearly 17% to close at $39.78 per share on May 2, 2018, and has yet to recover its lost value.
Unum Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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