New Securities Class Action Lawsuit Filed Against Lincoln National Corporation (LNC)

A recent securities class action lawsuit has been filed against Lincoln National Corporation (LNC) for alleged violations of the Securities Exchange Act of 1934. The lawsuit, filed in the United States District Court for the Eastern District of Pennsylvania, represents investors who purchased or acquired LNC securities between November 4, 2020, and November 2, 2022.

The Complaint in the lawsuit claims that Lincoln National Corporation failed to disclose several key pieces of information to its investors. Firstly, it is alleged that the company experienced a decline in its variable universal life insurance business. Secondly, it is claimed that the goodwill associated with the life insurance business was overstated. Additionally, the company is accused of having outdated policy lapse assumptions and overstated reserves. Lastly, it is alleged that the company’s reported financial results and financial statements were misstated.

The lawsuit gained traction after Lincoln National released its third-quarter 2022 financial results, revealing a net loss of $2.6 billion for the quarter. This significant loss was compared to a net income of $318 million for the same quarter in the previous year. The company attributed the decline to net unfavorable notable items related to the annual review of DAC and reserve assumptions, as well as a goodwill impairment to the life insurance business.

Following the release of this information, Lincoln National’s stock price plummeted by 33.2%, resulting in a loss of $17.27 per share. The decrease closed at $34.83 per share on November 3, 2022.

Investors who believe they may be affected by these alleged violations and wish to discuss their legal rights and options can visit the dedicated Lincoln National Corporation Shareholder Class Action Lawsuit webpage or contact Investor Relations Manager Peter Allocco at (212) 951-2030 or [email protected]. It’s important to note that individuals can still participate in any potential recovery without serving as lead plaintiff by choosing not to take any action and remaining an absent class member.

Since 1993, Bernstein Liebhard LLP, the law firm responsible for initiating this lawsuit, has recovered over $3.5 billion for its clients. The firm has a strong track record of successfully litigating numerous lawsuits and class actions, earning recognition on The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and being listed in The Legal 500 for sixteen consecutive years.

Please note that this article is for informational purposes only and does not constitute legal advice.

In addition to the information provided in the article, there are several current market trends and potential forecasts worth considering in relation to the securities class action lawsuit against Lincoln National Corporation (LNC).

Market Trends:
1. Increasing Class Action Lawsuits: Class action lawsuits related to securities fraud or violations of securities laws have been on the rise in recent years, with both individual and institutional investors seeking compensation for alleged misconduct by companies.

2. Scrutiny on Financial Reporting: There is a growing emphasis on accurate and transparent financial reporting, with regulators and investors closely monitoring companies’ financial statements and disclosures. This trend has led to an increase in lawsuits when discrepancies or misstatements are discovered.

Forecasts:
1. Litigation Outcome: The outcome of the securities class action lawsuit against LNC is uncertain and will depend on various factors, including the strength of the plaintiffs’ claims, the evidence presented, and the arguments made by both sides. It is difficult to predict the outcome, as such cases often involve complex legal and financial issues.

2. Potential Settlement: Given the potential financial impact of the lawsuit on LNC and the company’s desire to avoid prolonged litigation and negative publicity, there is a possibility of a settlement between the parties involved. Settlements in securities class action lawsuits often involve monetary compensation for the affected investors, as well as changes to corporate governance and disclosure practices.

Key Challenges and Controversies:
1. Allegations of Misrepresentation: The lawsuit alleges that LNC failed to disclose important information to its investors, including the decline in its variable universal life insurance business and the overstatement of goodwill and reserves. If these allegations are proven, it could raise questions about the company’s transparency and potentially impact investor confidence in LNC.

2. Stock Price Volatility: The significant drop in LNC’s stock price following the release of the third-quarter financial results highlights the volatility and sensitivity of the market to negative news or uncertainties surrounding a company. Such volatility can have a substantial impact on investor portfolios and may contribute to legal action by affected shareholders.

Advantages and Disadvantages:
Advantages of the securities class action lawsuit for affected investors include the possibility of obtaining financial compensation and holding LNC accountable for any alleged wrongdoing. Additionally, participating in a class action lawsuit allows investors to pool their resources and benefit from the expertise of experienced law firms like Bernstein Liebhard LLP.

However, there are also potential disadvantages for investors, such as the uncertainty of the outcome and the possibility of a lengthy legal process. Additionally, even if the lawsuit is successful, the financial recovery may not fully compensate for the losses suffered, and there may be delays in distributing any settlement funds.