Labaton Sucharow Recovers $20 Million in Class Action Settlement with Genworth Financial
NEW YORK (June 21, 2017) – Labaton Sucharow LLP has reached a $20 million settlement, subject to court approval, with Genworth Financial, Inc. Serving as court-appointed co-lead counsel on behalf of the class, the Labaton Sucharow team was led by partner Jonathan Gardner with assistance from attorneys Christine M. Fox and Seth Jessee.
The class representatives, City of Hialeah Employees’ Retirement System and New Bedford Contributory Retirement System, alleged that Genworth issued false and misleading statements that, among other things misrepresented: (i) the financial stability of Genworth’s Australian Mortgage Insurance unit; (ii) the adequacy of loss reserves in the Australian Mortgage Insurance unit due to increased claims of a large size; (iii) loss pressures from flooding in Queensland, Australia in early 2011; (iv) the nature and timeliness of information (including delinquency information) the Australian Mortgage Insurance unit was receiving from its loan servicers; and (v) whether the Australian IPO would proceed as planned in the second quarter of 2012.
The case is In re Genworth Financial, Inc., Securities Litigation, No. 14-cv-2392 (S.D.N.Y.).