NEW YORK, July 28, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Unum Group (“Unum” or the “Company”) (NYSE: UNM ) and certain of its officers. The class action, filed in United States District Court, Eastern District of Tennessee, and docketed under 18-cv-00154, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired Unum securities between January 31, 2018 and May 2, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Unum securities between January 31, 2018, and May 2, 2018, both dates inclusive, you have until August 13, 2018, 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 rswilloughby@pomlaw.com 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 the number of shares purchased.
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Unum purports to provide financial protection benefits in the United States and the United Kingdom. The Company represents that its products include disability, life, accident, critical illness, dental and vision, and other related services.
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) Unum was experiencing a higher claims incidence for its long-term care business; (ii) Unum was experiencing less favorable policy terminations in connection with its long-term care business; (iii) accordingly, Unum’s long-term care business loss ratio would foreseeably reach the upper 90% range; and (iv) 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/or misleading and/or lacked a reasonable basis.
On May 1, 2018, after the market closed, Unum issued a press release entitled “Unum Group Reports First Quarter 2018 Results.” Therein, Unum reported that its first-quarter 2018 loss ratio for its long-term care business was a disappointing 96.6%, compared to only 88.6% for the first quarter of 2017. The first quarter 2018 loss ratio also far exceeded the Company’s earlier-stated expectation of 85-90%.
On May 2, 2018, the Company held a conference call to discuss its first quarter 2018 financial results. On the call, Defendant John F. McGarry, the Company’s Chief Financial Officer, elaborated on the Company’s disclosures in the May 1, 2018 press release, stating that “[b]enefits experience this quarter was driven by new claim incidence that ran much higher than expected” and “the higher loss ratio this quarter was negatively impacted by a lower level of policy terminations.”
On this news, the Company’s stock price fell $8.12 per share, or nearly 17%, to close at $39.78 per share on May 2, 2018, on unusually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, 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
CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com 888-476-6529 ext. 9980
