NEW YORK (TheStreet) --Shares of Genworth Financial Inc. (GNW) are lower today by 5.0% to $16.92 following news the financial security company is being sued in a class action suit known officially as City of Hialeah Employees' Retirement System v. Genworth Financial, Inc. et al.
The suit was filed in the U.S. District Court for the Southern District of New York.
The lawsuit has been brought over "allegedly false and misleading statements" made between February and April of 2012.
The lawsuit alleges that Genworth misled investors about the company's outlook for its Australian mortgage insurance unit and the ability to move forward with an IPO.
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TheStreet Ratings team rates GENWORTH FINANCIAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENWORTH FINANCIAL INC (GNW) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."