NEW YORK, Aug. 22, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or otherwise acquired the securities of Genworth Financial, Inc. ("Genworth" or the "Company") (NYSE:GNW) during the period between December 4, 2013 through July 29, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that during the Class Period, Defendants failed to disclose that: (i) the Company's long term care insurance ("LTC") claims were increasing in number and size; (ii) the Company would have to increase its reserves to meet these claims; and (iii) 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 July 29, 2014, after the market close, the Company issued a press release announcing that its LTC insurance division suffered from higher losses than the prior quarter due to the increased number and size of LTC insurance claims. The Company announced that it was conducting a comprehensive review of the adequacy of its claim reserves. On this news, shares of Genworth declined $2.28 per share, over 14%, to close on July 30, 2014, at $13.98 per share, on unusually heavy volume.
If you wish to serve as lead plaintiff, you must move the Court no later than October 20, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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