NEW YORK, May 5, 2017 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Citizens, Inc. ("Citizens" or the "Company") (NYSE: CIA) and certain of its officers. The class action, filed in United States District Court, Western District of Texas, is on behalf of a class consisting of investors who purchased or otherwise acquired Citizens securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Citizens securities between March 11, 2015 and March 8, 2017, both dates inclusive, you have until May 15, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Citizens, Inc. operates primarily as an insurance holding company. The Company, through its subsidiaries, offers a wide range of insurance products and services, including life and health and property and casualty insurance.
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's brokers and pitchbooks falsely claim that most of the funds from its insurance policies are directly invested in U.S. Treasury Bond; (ii) funds from the Company's insurance policies are funneled into continuous open market purchases that have inflated the Company's stock price; and (iii) as a result of the foregoing, Citizens' public statements were materially false and misleading at all relevant times.
On March 8, 2017, Seeking Alpha published a report alleging that despite Citizen's promises of "outsized 'guaranteed' returns backed by U.S. Treasury bonds," the Company's funds are "not invested in U.S. Treasuries and [Citizen's] policies appear designed to prop up Citizen's stock price." The Seeking Alpha report further stated that "[b]ecause most of the [Company's] returns to existing policyholders are driven by funds contributed by new policyholders, Citizens displays some characteristics that appear analogous to a Ponzi scheme."
On this news, Citizens' share price fell $0.45, or over 5% over the next two trading days, to close at $8.00 on March 9, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP