The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of Genworth Financial Inc (NYSE:GNW) shares was launched over potential breaches of fiduciary duties by certain officers and directors at Genworth Financial.
Investors who purchased shares of Genworth Financial Inc (NYSE:GNW) and currently hold any of those NYSE:GNW shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain Genworth Financial officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
Genworth Financial Inc reported that its annual Total Revenue declined from over $10.08 billion in 2010 to over $9.42 billion in 2013 while its respective Net Income increased from $52 million to $560 million. Shares of Genworth Financial Inc grew from $4.32 per share in August 2013 to as high as $18.22 per share in May 2014.
On July 29, 2014, after the market close, Genworth Financial Inc announced that its LTC insurance division suffered from higher losses than the prior quarter due to the increased number and size of LTC insurance claims. Genworth Financial Inc announced that it was conducting a comprehensive review of the adequacy of its claim reserves.
Shares of Genworth Financial Inc declined from $16.26 per share on July 29, 2014 to $12.89 per share on July 30, 2014, respectively $12.64 per share on August 7, 2014.
On August 19, 2014 a lawsuit was filed against Genworth Financial Inc over alleged securities laws violations. The plaintiff claimed that between December 4, 2013 and July 29, 2014 Genworth Financial Inc allegedly failed to disclose that Genworth Financial Inc’s long term care insurance (“LTC”) claims were increasing in number and size, that Genworth Financial Inc would have to increase its reserves to meet these claims, and that, as a result of the foregoing, Genworth Financial Inc’s statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.
On March 2, 2015, Genworth Financial Inc reported its financial results for the fourth quarter and full year 2014. Among other things, Genworth Financial Inc reported that its Total Revenue rose from over $9.4 billion in 2013 to over $9.56 billion in 2014, whiles its Net Income of $560 million in 2013 declined to a Net Loss of over $1.24 billion in 2014. In addition, Genworth Financial Inc said that it did not have adequate controls in place to ensure that changes made to one of its methodologies associated with the long-term care insurance claim reserves assumption was executed correctly and that due to Genworth’s lack of financial controls, Genworth Financial Inc failed to identify a $44 million after-tax calculation error.
Shares of Genworth Financial Inc (NYSE:GNW) declined to as low as $7.04 per share on March 2, 2015.
On March 17, 2015, NYSE:GNW shares closed at $7.35 per share.
Those who purchased shares of Genworth Financial Inc (NYSE:GNW) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego