Genworth to Pay $219M to Settle Securities Lawsuit

Genworth Financial Inc. has settled a $219 million class-action lawsuit after making false representations to investors over the strength of its long-term-care business.

Genworth, the largest long-term-care insurance carrier, announced after the market close on Friday that it had reached the preliminary settlement with plaintiffs.

The class-action lawsuit, In re Genworth Financial, Inc. Securities Litigation, alleges securities law violations by Genworth; its chief executive Tom McInerney; and former chief financial officer Marty Klein. Over a specified period between 2013 and 2014, the company and its officers allegedly misrepresented the profitability of Genworth’s long-term-care insurance business — its core business — and reported false financial results by understating necessary reserves.

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