In re Genworth Financial, Inc. Securities Litigation
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Welcome to the In re Genworth Financial, Inc. Securities Litigation Website

This website has been established to provide general information related to the proposed settlement of the case entitled In re Genworth Financial, Inc. Sec. Litig., Master File No. 1:14-cv-02392-AKH (S.D.N.Y.) (the “Litigation”). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated June 15, 2017, which can be found and downloaded by clicking on the Case Documents tab above. 

The Court ordered that the law firms of Labaton Sucharow LLP and Robbins Geller Rudman & Dowd LLP represent the Class Members, including you. These lawyers are called Class Counsel or Co-Lead Counsel. If you want to be represented by your own lawyer, you may hire one at your own expense.

Statement of Plaintiffs' Recovery

The proposed Settlement will create a cash fund in the principal amount of Twenty Million Dollars ($20,000,000.00) (the “Settlement Amount”), plus any interest that may accrue on the cash fund while it is in escrow (the “Settlement Fund”).

This is a class action alleging securities fraud brought by the City of Hialeah Employees’ Retirement System and New Bedford Contributory Retirement System as the “Class Representatives” against Genworth Financial, Inc. ("Genworth" or the "Company") and certain of its former officers. The complaint alleged that Defendants made materially false and misleading statements to investors during the period from November 3, 2011 through April 17, 2012, inclusive (the “Class Period”), in violation of §§10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint further alleged that on April 17, 2012, after the market closed, Genworth announced that the planned second quarter 2012 minority initial public offering (“IPO”) of its Australian mortgage insurance (“MI”) subsidiary would be delayed until at least “early 2013,” with the “new timeframe primarily reflect[ing] recent business performance in Australia.” The next day, on April 18, 2012, Genworth’s stock price dropped.

Class Representatives claimed that Defendants made materially false statements and omitted material information regarding: (i) the financial stability of Genworth’s Australian MI unit; (ii) the adequacy of loss reserves in the Australian MI 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 MI unit was receiving from its loan servicers; and (v) whether the Australian IPO would proceed as planned in the second quarter of 2012.

Defendants denied all wrongdoing, denied that they had made any false statements or omissions whatsoever, continue to maintain that Genworth’s disclosures complied with all applicable laws and regulations, and contend that the allegations and claims raised in the complaint lack merit.

The Settlement Fund, subject to deductions for, among other things, costs of class notice and claim administration and certain taxes and tax related expenses and for attorneys’ fees and expenses approved by the Court, will be available for distribution to Class Members. Your recovery from this fund will depend on a number of variables, including your completion and submission of a valid and timely Claim Form, the number of shares of publicly traded Genworth common stock you purchased from November 3, 2011 through April 17, 2012, inclusive, the timing of your purchases and any sales, and how many others similarly situated make claims. If all eligible Class Members submit claims, Class Counsel estimates that the average distribution per share of Genworth common stock will be approximately $0.14 per share before deduction of Court-approved fees and expenses. In Class Counsel’s experience, actual claimants are fewer than 100%. For example, assuming between 25% and 75% of eligible Class Members submit claims, the average distribution per share would be between approximately $0.55 per share and $0.18 per share, respectively, before the deduction of Court-approved fees and expenses.

Additional Information

Although the information on this website is intended to assist you, it does not replace the information contained in the Notice of Pendency and of Proposed Class Action Settlement and Motion for Attorneys’ Fees and Expenses ("Notice") and the Stipulation.

Your Legal Rights and Options in This Settlement

Submit a Claim Form postmarked or submitted on-line no later than November 22, 2017 The only way to be eligible to receive a payment from the Net Settlement Fund.
Exclude yourself by submitting a written request for exclusion postmarked no later than October 25, 2017 If you exclude yourself from the Class, you will not be bound by anything that happens in the Litigation but you will not be eligible to receive any payment from the Settlement. This is the only option that, assuming your claim is timely brought, might allow you to ever bring or be part of any other lawsuit (other than this Litigation) against Defendants and/or the other Defendants Releasees concerning the Released Plaintiffs’ Claims. See pages 9-10 of the Notice for details.
Object to the Settlement by submitting a written objection postmarked no later than October 25, 2017 Write to the Court about why you do not like the Settlement, the Plan of Allocation, and/or the fee and expense application. If you object, you will still be a member of the Class and you will not be excluded. You will be eligible to submit a Claim Form, if done timely. See page 10 of the Notice for details.
Go to a Hearing on November 15, 2017 and file a Notice of Appearance so that it is received no later than October 25, 2017 Ask to speak in Court about the Settlement. See pages 3 and 9-10 of the Notice for details.
Do Nothing If you are a Class Member, you will not be eligible to receive a payment from the Settlement. You will give up any rights to sue the Defendants and/or the Defendants Releasees regarding all of the Released Plaintiffs’ Claims, and you will still be bound by the Settlement.