Robbins Geller Rudman & Dowd Starts Class Action Suit Against Genworth Financial

Proquest LLC

Robbins Geller Rudman & Dowd announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Southern District of New York on behalf of purchasers of Genworth Financial, Inc. securities during the period between February 3, 2012 and April 17, 2012 (the "Class Period").

According to a release, the complaint charges Genworth and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Genworth is a financial security company that provides insurance, wealth management, investment and financial solutions.

The complaint alleges that throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public, including about the stability and outlook of the Company's Australian mortgage insurance unit or the Company's ability to complete an initial public offering ("IPO") of its Australian business unit in the second quarter of 2012. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period, trading as a high of $9.54 per share on February 21, 2012.

On November 3, 2011, Genworth announced plans to pursue a minority share IPO of its Australian mortgage insurance business. The Company planned to sell up to 40 percent of its $2 billion Australian unit and intended to use part of the proceeds to repurchase shares of the Company's stock. The complaint alleges that throughout the Class Period, defendants assured investors that the IPO remained on track to close in the second quarter of 2012. Then on April 17, 2012, Genworth announced a new timeframe for completing its planned IPO, stating that "Genworth is now seeking to complete the IPO in early 2013, subject to market conditions, valuation considerations including business performance, and regulatory approvals." On this news, the Company's stock price dropped $1.83 per share on April 18, 2012 to close at $5.87 per share, a one-day decline of nearly 24 percent and a nearly 39 percent decline from its Class Period high.

Plaintiff seeks to recover damages on behalf of all purchasers of Genworth securities during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and experience in actions involving financial fraud.

Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation.