According to the law firm press release, Genworth is a financial services company, and provides insurance, investment and financial solutions in the United States and internationally. The Complaint alleges that defendants issued false and misleading statements or failed to disclose material information concerning the Company’s business, operations and prospects. Specifically, defendants misrepresented and/or failed to disclose that the volume and size of the Company's long term care insurance claims were increasing, and that the Company would have to increase its reserves to meet these claims.
On July 29, 2014, the Company announced that its long term care insurance division suffered higher losses than in the prior quarter, as a result of increased long term care insurance claims. The Company further announced that it was reviewing the adequacy of its claim reserves. Following this news, on July 30, 2014, the price of Genworth shares declined approximately 14%, or $2.28, to a $13.98 per-share closing price, on unusually heavy volume.
On October 14, 2014, this case was voluntarily dismissed in favor of a pending lawsuit docketed under 14-cv-00682 in the Eastern District of Virginia.
On May 1, 2015, the court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.
On April 1, 2016, the parties filed a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on April 18.