CASES
MetLife, Inc.
Class Period: Feb 2, 2010 to Oct 6, 2011
Lead Plaintiff Deadline: Mar 12, 2012
Summary of Case:
A securities class action has been filed against MetLife, Inc. ("MetLife" or the "Company") on behalf of all purchasers of the common stock of MetLife between February 2, 2010 and October 6, 2011, inclusive (the "Class Period"). The case was filed in The USDC Southern District of New York.
The Complaint alleges as follows: On August 5, 2011, the Company disclosed in its Form 10-Q filed with the SEC that regulatory investigations into its death benefits practices could result in additional escheatment to the states and administrative penalties, the costs of which could be substantial. This disclosure caused the Company's stock price to decline 11% by the next trading day. Then, on October 6, 2011, the Company filed a Form 8-K with the SEC, stating among other things that it would take at least a $115 million after-tax charge to increase its reserves in connection with its death benefits practices. On this news, the Company's stock price declined from $30.69 on October 6, 2011 to $28.80 on October 7, 2011.
Furthermore, Defendants' statements during the Class Period were each materially false and misleading in that Defendants knew or recklessly disregarded that: (a) the Company had not properly or adequately reserved for the payment of benefits to policyholders' beneficiaries when it knew or had reason to know the policyholders were deceased; (b) the Company's historical processes, policies and procedures were inadequate to identify current liabilities related to policyholders which had died but whose beneficiary claims had not yet been made; (c) the Company knew to be false its assurances that the allegations regarding the Company's death benefits practices were without merit; and (d) Defendants knew that the Company's financial results and guidance for its operating earnings during the Class Period were false.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.