According to the Complaint, Phoenix is the holding company of Phoenix Life Insurance Company. The Company provides life insurance and annuities products for the accumulation, preservation, and transfer of wealth. The Phoenix Companies offer a broad portfolio of products and services to high-net-worth individuals, and institutions.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company improperly classified certain deposits and withdrawals of universal life and variable universal life products as part of its cash flows used in continued operations; (ii) the Company improperly reported certain fees and interest charges as cash flows provided by financing activities; (iii) the Company lacked adequate internal and financial controls; and (iv) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On November 8, 2012, the Company disclosed that it will restate its previously filed financial statements for the years 2009 through 2011, the interim periods for 2011, and the first and second quarter of 2012 to "correct certain errors relating to the classification of items on the consolidated statement of cash flows in those periods." On this news, Phoenix stock declined $2.68 per share or nearly 10%, to close at $25.31 per share on November 8, 2012.
On July 15, 2013, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel. The Lead Plaintiff filed a consolidated and amended complaint on November 1st.