S&C Obtains Dismissal of Securities Claims Against Insurer UnumJune 17, 2020
S&C secured the dismissal with prejudice of all federal securities law claims brought by a putative class of investors against insurer Unum Group and certain of its current and former executives.
The plaintiffs in Pittman v. Unum Group alleged that Unum materially misled its shareholders about adverse experiences suffered by its closed block of long-term care insurance policies, a product Unum maintains but no longer markets. When Unum's stock dipped after it announced a reserve review that led to a $750 million increase to its long-term care reserves in 2018, numerous securities fraud cases were filed in Tennessee federal court.
In a comprehensive decision dismissing all claims with prejudice and without leave to amend, Judge Clifton Corker of the Eastern District of Tennessee held on June 1 that the plaintiffs had pled neither an actionable misstatement nor scienter. The court ruled that “none of what Unum represented was false,” and that the allegations failed to raise a strong inference of fraudulent intent by any defendant.
Brian Frawley led the S&C team for Unum.