DALLAS, Jan. 16, 2012 /PRNewswire/ -- Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of Directors of MetLife, Inc. ("MetLife" or "MET") (NYSE: MET) related to potential securities violations between February 2, 2010 and October 6, 2011 (the "Class Period").
"Recent revelations about alleged improper business practices and procedures regarding key aspects of MetLife's death benefits business have prompted the firms to investigate possible breaches of fiduciary duties and other violations of state law by MetLife's officers and directors. Based on our investigation, we are prepared to institute litigation to preserve the company and the value of MetLife/MET stock for all shareholders," said shareholder rights attorney Willie Briscoe.
If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at [email protected], or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at [email protected]. There is no cost or fee to you.
Specifically, in a recently filed federal class action complaint, MetLife and certain of its officers and directors were charged with violating provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges that defendants' statements during the Class Period were each materially false and misleading in that defendants knew or recklessly disregarded that: (a) MetLife had not properly or adequately reserved for the payment of benefits to policyholders' beneficiaries when it knew or had reason to know the policyholders were deceased; (b) MetLife's historical processes, policies and procedures were inadequate to identify current liabilities related to policyholders which had died but whose beneficiary claims had not yet been made; (c) MetLife knew to be false its assurances that the allegations regarding the company's death benefits practices were without merit; and (d) defendants knew that MetLife's financial results and guidance for its operating earnings during the Class Period were false.
Further, on August 5, 2011, MetLife disclosed in its Form 10-Q filed with the SEC that regulatory investigations into its death benefits practices could result in additional escheatment to the states and administrative penalties, the costs of which could be substantial. This disclosure caused MetLife's stock price to decline 11% by the next trading day. Then, on October 6, 2011, the company filed a Form 8-K with the SEC, stating among other things that it would take at least a $115 million after-tax charge to increase its reserves in connection with its death benefits practices. On this news, MetLife's stock price declined from $30.69 on October 6, 2011 to $28.80 on October 7, 2011.
The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.
Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.
SOURCE Powers Taylor, LLP