A recent investigation by renowned national securities law firm Faruqi & Faruqi, LLP has revealed potential claims against Lincoln National Corporation (NYSE: LNC). The investigation focuses on allegations that the company and its executives violated federal securities laws by making false and misleading statements.
According to the complaint, it is alleged that Lincoln National was experiencing a decline in its VUL (Variable Universal Life) business. Additionally, the goodwill associated with the company’s life insurance business was overstated, and the Company’s policy lapse assumptions were outdated. These factors led to the overstatement of the company’s reserves and the misstatement of its financial results and financial statements.
On November 2, 2022, Lincoln National released its third-quarter financial results, reporting a net loss of $2.6 billion for the quarter. This significant loss compared to a net income of $318 million for the same period the previous year. The losses were attributed to unfavorable notable items related to the annual review of DAC (deferred acquisition costs) and reserve assumptions. Furthermore, the company disclosed a $634 million goodwill impairment to its life insurance business.
As news of the company’s financial troubles spread, investors experienced significant losses. Lincoln National’s stock price fell by 33.2% to close at $34.83 per share on November 3, 2022.
Investors who suffered losses exceeding $100,000 between November 4, 2020, and November 2, 2022, are encouraged to contact Faruqi & Faruqi partner Josh Wilson directly. By discussing their legal rights, investors can explore potential avenues for recourse.
Faruqi & Faruqi, LLP is a highly respected law firm that has a successful track record of recovering substantial amounts of money for investors. With offices in New York, Pennsylvania, California, and Georgia, the firm is well-positioned to provide expert legal representation.
Investors with information related to Lincoln National’s conduct are also encouraged to come forward. Whistleblowers, former employees, and shareholders may have valuable insights that can contribute to the ongoing investigation.
While the decision to serve as a lead plaintiff is optional, it does not impact an investor’s ability to recover any potential losses. Faruqi & Faruqi, LLP assures all clients that their communications will be treated with utmost confidentiality.
It is important to note that prior results do not guarantee or predict similar outcomes in future cases. However, individuals who believe they may have a valid claim against Lincoln National are encouraged to reach out to Faruqi & Faruqi, LLP to discuss their particular case in detail.
Misleading statements in the case of Lincoln National Corporation have resulted in investor losses. It has been alleged that the company and its executives violated federal securities laws by making false and misleading statements. The allegations include a decline in the company’s VUL business, an overstatement of goodwill associated with the life insurance business, and outdated policy lapse assumptions. These factors led to the overstatement of reserves and misstatement of financial results and statements.
In the third quarter of 2022, Lincoln National reported a net loss of $2.6 billion, compared to a net income of $318 million for the same period the previous year. The losses were attributed to unfavorable notable items related to the annual review of deferred acquisition costs (DAC) and reserve assumptions. Additionally, the company disclosed a $634 million goodwill impairment to its life insurance business. These financial troubles resulted in a 33.2% decrease in the company’s stock price, closing at $34.83 per share on November 3, 2022.
Investors who suffered losses exceeding $100,000 between November 4, 2020, and November 2, 2022, are encouraged to contact Faruqi & Faruqi partner Josh Wilson to discuss their legal rights and explore potential avenues for recourse. Faruqi & Faruqi, LLP is a respected law firm with a successful track record of recovering substantial amounts of money for investors.
In addition to individual investors, whistleblowers, former employees, and shareholders with relevant information related to Lincoln National’s conduct are also encouraged to come forward. Their insights may contribute to the ongoing investigation and potentially strengthen the case against the company.
It is important to mention that while prior results do not guarantee future outcomes, investors who believe they have a valid claim against Lincoln National should contact Faruqi & Faruqi, LLP to discuss their case in detail. The law firm assures confidentiality and emphasizes that the decision to serve as a lead plaintiff is optional and does not impact an investor’s ability to recover potential losses.
As for the current market trends related to the subject, the financial services industry has been facing increased scrutiny by regulatory authorities and investors. Instances of misleading statements, financial irregularities, and violations of securities laws have been observed across various companies, impacting investor confidence. This has led to a greater focus on corporate governance, transparency, and compliance within the industry.
In terms of forecasts, it is likely that regulatory authorities will continue to intensify their efforts in preventing and penalizing companies for misleading statements and fraudulent practices. Investors are expected to become more cautious and vigilant in their investment decisions, placing a greater emphasis on conducting thorough due diligence and seeking legal redress in case of losses resulting from misleading statements.
One of the key challenges associated with such cases is the complexity of proving that the statements made by a company were intentionally misleading or false. The legal process can be lengthy and require substantial evidence to establish a violation of securities laws. Additionally, litigation costs and the uncertainty of outcome pose challenges for investors seeking recourse.
Advantages of pursuing legal action include the potential for financial recovery and a positive impact on corporate accountability. Successful cases can serve as a deterrent to companies engaging in misleading practices, thereby protecting the interests of investors and fostering market integrity.
However, there are also disadvantages to consider. Legal proceedings can be time-consuming and may not guarantee a favorable outcome. There can be associated costs, such as legal fees and the potential for reputational damage. Additionally, the process itself may require significant effort from investors, including providing evidence and participating in court proceedings.
For more information on similar cases and developments in the financial services industry, you may visit reputable news sources like Reuters (https://www.reuters.com/) or Bloomberg (https://www.bloomberg.com/).