UNUM GROUP NEW YORK, Aug. 3, 2018 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Unum Group ("Unum" or the "Company") (NYSE:UNM) of the August 13, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Unum stock or options between October 27, 2016 and May 1, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/UNM. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Eastern District of Tennessee on behalf of all those who purchased Unum securities between October 27, 2016 and May 1, 2018 (the "Class Period"). The case, City of Taylor Police and Fire Retirement System v. UNUM Group, et al. (TV1), No. 18-cv-00169 was filed on July 25, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose: (i) that the Company was experiencing a higher claims incidence for its long-term care business; (ii) that the Company was experiencing less favorable policy terminations in connection with its long-term care business; (iii) that the Company had grossly miscalculated the actuarial assumptions underlying its long-term care business; (iv) that premium price hikes could not sustainably offset increasing losses related to the Company's long-term care business; (v) that the Company was subject to a much greater risk of catastrophic losses and major reserve charges than represented to investors; and (vi) that, 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.
Specifically, On May 1, 2018, Unum stunned investors when it issued a press release entitled "Unum Group Reports First Quarter 2018 Results," which 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 following day, the Company held a conference call to discuss its first quarter 2018 financial results. On the call, John F. McGarry, the Company's Chief Financial Officer, elaborated on the Company's disclosures in the May 1, 2018 press release. McGarry stated that the volatility experienced in Unum's long-term care business was expected to "continue in the future."
After the announcement, Unum's share price fell from $47.90 per share on May 1, 2018 to a closing price of $39.78 on May 2, 2018—a $8.12 or a 16.95% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Unum's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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