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.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
Copyright Business Wire 2014