NEW YORK (TheStreet) -- Shares of Genworth Financial (GNW) are down following an announcement that the company is under investigation for potential claims concerning alleged violations of federal securities law by law firm Glancy Binkow & Goldberg LLP.
The firm said the investigation on behalf of Genworth's investors focuses on certain statements issued by the company concerning its business and financial prospects.
Genworth CEO Tom McInerney, who told investors in December 2013 that the company had adequate reserves for coverage, said yesterday, that he was speaking then about a broad measure of its finances, and "never said in the overall discussion that we wouldn't have quarterly volatility", Bloomberg reports.
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An analyst at Morgan Stanley said, "Genworth had downplayed the risk of a reserve charge", Bloomberg added.
Yesterday, after Genworth said it was reviewing whether enough funds had been set aside for claims, the company's shares fell the most since 2012.
Genworth Financial stock is down -5.15% to $13.26 today.
Separately, 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 a few notable strengths, 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, compelling growth in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."