Investors who purchased or acquired securities of Lincoln National Corporation (NYSE: LNC) between November 4, 2020, and November 2, 2022, may be eligible to take part in a class-action lawsuit against the company. The lead plaintiff of the Lincoln National class action lawsuit will be appointed by June 24, 2024, and will represent all other class members in directing the lawsuit.
The allegations in the lawsuit claim that Lincoln National and certain current and former executives violated the Securities Exchange Act of 1934 by making false and misleading statements and failing to disclose important information. It is alleged that Lincoln National experienced a decline in its variable universal life insurance business, causing the goodwill associated with the life insurance business to be overstated. As a result, the company’s policy lapse assumptions were outdated, leading to an overstatement of reserves and misstated financial results.
On November 2, 2022, Lincoln National reported a net loss of $2.6 billion for the third quarter, compared to a net income of $318 million in the same period the previous year. This significant loss was attributed to the company’s annual review of deferred acquisition costs and reserve assumptions, as well as a goodwill impairment to the life insurance business. Following this news, Lincoln National’s stock price plummeted by more than 33%.
Investors who believe they have suffered substantial losses due to these alleged violations can seek appointment as lead plaintiff in the class-action lawsuit. It is important to note that investors do not need to serve as the lead plaintiff to share in any potential recovery. Robbins Geller Rudman & Dowd LLP, a leading complex class action firm, is representing plaintiffs in securities fraud cases and is actively pursuing this lawsuit against Lincoln National Corporation.
Investors who wish to learn more about their rights and potential involvement in the case can visit the website provided or contact the law firm directly. Past results achieved by Robbins Geller Rudman & Dowd LLP do not guarantee future outcomes, but the firm has a strong track record of recovering substantial amounts for investors in securities fraud cases.
Article: “Investors Can Seek Legal Recourse – Securities Fraud Lawsuit Against Lincoln National Corporation”
In addition to the information provided in the article, there are several current market trends and key challenges associated with the securities fraud lawsuit against Lincoln National Corporation. These include:
Current market trends:
1. Heightened scrutiny on financial disclosures: There has been an increased emphasis on accurate and transparent financial reporting in recent years, with regulators and investors closely monitoring companies for any indications of misleading statements or omissions.
2. Growing importance of investor protection: With the rise in sophisticated investment strategies and complex financial instruments, investor protection has become a significant concern. Lawsuits such as the one against Lincoln National highlight the need for accountability and transparency in the financial industry.
Forecasts:
1. Potential impact on Lincoln National’s reputation: The lawsuit and allegations of misleading statements and misstated financial results could have a lasting impact on Lincoln National’s reputation. If the allegations are proven true, the company may face challenges in rebuilding trust with investors and customers.
2. Potential financial impact: Depending on the outcome of the lawsuit, Lincoln National may face significant financial consequences. If found liable, the company could be required to pay damages to investors, which could impact its financial health and potentially lead to changes in its business strategy.
Key challenges and controversies:
1. Determining liability and damages: One of the key challenges in securities fraud lawsuits is establishing the extent to which a company and its executives are responsible for any alleged wrongdoing. This often requires extensive investigation and analysis of financial records, internal communications, and other evidence.
2. Complexity of financial statements: Understanding the true financial health of a company can be challenging for investors, especially when dealing with complex financial instruments and accounting practices. The allegations in the lawsuit suggest that Lincoln National’s financial statements may have been misleading, highlighting the importance of transparent and easily comprehensible financial disclosures.
Advantages and disadvantages:
Advantages of the class-action lawsuit for investors include the potential for financial recovery if the lawsuit is successful. By joining as a class member, investors benefit from the expertise and resources of the law firm representing them, increasing the likelihood of a favorable outcome.
Disadvantages include the uncertainty and length of the legal process. Lawsuits can take years to reach a resolution, and there is no guarantee of success. Additionally, even if the lawsuit is successful, investors may only recover a portion of their losses, as any settlement or judgment may need to be divided among the class members.
Related links:
– Lincoln National Corporation
– Robbins Geller Rudman & Dowd LLP (law firm representing the plaintiffs)