SAN DIEGO, June 21, 2018 /PRNewswire/ -- Shareholder Rights Law Firm Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of persons or entities who purchased or otherwise acquired securities of Unum Group ("Unum") (NYSE: UNM).
According to the lawsuit, throughout the class period defendants made false and misleading statements and failed to disclose that: (1) Unum was experiencing a higher claims incidence for its long-term care business; (2) Unum was experiencing less favorable policy terminations in connection with its long-term care business; (3) Unum's long-term care business loss ratio would reach the upper 90% range; and (4) as a result of the foregoing, defendants' statements about Unum's business, operations, and prospects, including statements related to Unum's long-term care reserves and capital management plans, were materially false and misleading and lacked a reasonable basis.
On May 1, 2018, Unum issued a press release titled, "Unum Group Reports First Quarter 2018 Results," which included the fact that the loss ratio for the Company's long-term care division was 96.6% in the first quarter of 2018, as opposed to 88.6% for the first quarter of 2017. On May 2, 2018, Unum's Chief Financial Officer, John F. McGarry, stated: "benefits experience this quarter was driven by new claim incidence that ran much higher than expected," adding that "the higher loss ratio this quarter was negatively impacted by a lower level of policy terminations." McGarry also said, "we continue to experience a high level of volatility in this line and expect it will continue in the future." Based on the press release and subsequent call, Unum's share price fell 16.95%, or $8.12 per share, to close at $39.78 on May 2, 2018.
Shareholders have until August 13, 2018, to petition the court for lead plaintiff status. Your capability and right to share in any recovery doesn't entail that you serve as a lead plaintiff. There is no cost or obligation to you.
If you are interested in learning more about your legal rights and remedies, please contact Jim Baker ([email protected]) at 619-814-4471. If you email, please include your phone number.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
SOURCE Johnson Fistel, LLP