SAN DIEGO and MENLO PARK, Calif., April 10, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Genworth Financial, Inc. (NYSE: GNW) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities and Exchange Act of 1934 between February 3, 2012 and April 17, 2012 (the "Class Period"). Genworth is a financial security company that provides insurance, wealth management, and investment and financial solutions.
Genworth Accused of Misrepresenting Its Australian Mortgage Insurance Unit
According to the complaint, shares of Genworth fell $1.83 or nearly 24%, to close at $5.87 per share on April 18, 2012, following an announcement by the company that its planned minority initial public offering of its Australian mortgage insurance businesses would be completed in early 2013 rather than the second quarter of 2012, as had been previously announced. According to the press release, the new timeframe for completing the IPO was reflective of the company's poor business performance in its Australian Mortgage Insurance sector, which Genworth attributed to the declining nature of the Australian mortgage insurance market, citing recent natural disasters and regional economic slowdowns.
The complaint further alleges that Genworth failed to disclose to investors: (i) that it had greater exposure to anticipated losses and defaults for its Australian book of business related to insurance written in the coastal area of Queensland, and to insurance written in 2007 and 2008 to small business and self-employed borrowers and; (ii) known trends and uncertainties concerning an increase in claims and delinquencies associated with its Australian unit in the second half of 2011. As a result, Genworth's statements regarding the release of its Australian mortgage IPO were materially false and misleading throughout the Class Period.Gensworth Investors Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo If you invested in Genworth and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/genworth-financial-inc/ Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Attorney Advertising. Past results do not guarantee a similar outcome.