NEW YORK, July 27, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Unum Group (“Unum” or the “Company”) (NYSE: UNM ) in the United States District Court for the Eastern District of Tennessee on behalf of a class consisting of investors who purchased or otherwise acquired Unum securities between October 27, 2016 and May 1, 2018, seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.
The Complaint alleges that Defendants failed to disclose that: (1) the Company was experiencing a higher claims incidence for its long-term care business; (2) the Company was experiencing less favorable policy terminations in connection with its long-term care business; (3) the Company had grossly miscalculated the actuarial assumptions underlying its long-term care business; (4) premium price hikes could not sustainably offset increasing losses related to the Company’s long-term care business; (5) the Company was subject to a much greater risk of catastrophic losses and major reserve charges than represented to investors; and (6) as a result of the foregoing, the Company would not be able to maintain its long-term care interest adjusted loss ratio in the 85% to 90% range. As a result of Defendants’ false statements and/or omissions, Unum securities traded at artificially inflated prices during the Class Period.
On May 1, 2018, Unum stunned investors when it reported that the Company’s first quarter 2018 loss ratio for its long-term care business had ballooned to 96.6%, compared to only 88.6% for the first quarter of 2017. The first quarter 2018 loss ratio also far exceeded the 85% to 90% long-term range and even the “low 90s” near-term range the Company had previously provided to investors. The next day, the Company hosted a conference call to discuss its first quarter 2018 financial results during which the Company’s Chief Financial Officer stated that the volatility experienced in Unum’s long-term care business was expected to “continue in the future.” On this news, the price of the Company’s stock fell $8.12 per share, or nearly 17%, to close at $39.78 per share on May 2, 2018, on abnormally high trading volume.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the August 13, 2018 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
Please visit our website at http://www.gme-law.com for more information about the firm.
