MetLife Shareholders Class Action Securities Law Violations Lawsuit

MetLife Shareholders Bring Class Action Lawsuit Alleging Violations of Federal Securities Laws

Shareholders of MetLife, Inc. (“MetLife”) (NYSE: MET) have filed a class action lawsuit in the United States District Court for the Southern District of New York alleging violations of federal securities laws during the period between February 2, 2010 and October 6, 2011 (the “Class Period”).

The complaint charges MetLife and certain of its officers and directors in engaging in a fraudulent scheme and multiple violations of federal securities laws and the Securities Exchange Act of 1940. Specifically, shareholders allege that, as a result of MetLife’s death benefits practices and procedures, during the Class Period, defendants caused the Company to issue materially false and misleading statements concerning the Company’s current and future financial condition and its potential liability to policyholders, their beneficiaries or relevant state authorities for millions of dollars in benefits that should have been paid out to policyholders or escheated to the states. The Company is a global provider of insurance, annuities and employee benefit programs, headquartered in New York, New York, and trades on the New York Stock Exchange.

On August 5, 2011, the Company disclosed in its Form 10-Q filed with the SEC that regulatory investigations into its death benefits practices could result in additional escheatment to the states and administrative penalties, the costs of which could be substantial. This disclosure caused the Company’s stock price to decline 11% by the next trading day. Then, on October 6, 2011, the Company filed a Form 8-K with the SEC, stating among other things that it would take at least a $115 million after-tax charge to increase its reserves in connection with its death benefits practices. On this news, the Company’s stock price declined from $40.69 on October 6, 2011 to $28.80 on October 7, 2011.

According to the complaint, defendants’ statements during the Class Period were each materially false and misleading in that defendants knew or recklessly disregarded that:

  • (a) the Company had not properly or adequately reserved for the payment of benefits to policyholders’ beneficiaries when it knew or had reason to know the policyholders were deceased;
  • (b) the Company’s historical processes, policies and procedures were inadequate to identify current liabilities related to policyholders which had died but whose beneficiary claims had not yet been made;
  • (c) the Company knew to be false its assurances that the allegations regarding the Company’s death benefits practices were without merit;
  • (d) defendants knew that the Company’s financial results and guidance for its operating earnings during the Class Period were false; and
  • (e) defendants knew the Company knowingly failed to reserve for losses that it knew it had already incurred.

    Plaintiff seeks to recover damages on behalf of all purchasers of MetLife common stock during the Class Period (the “Class”).

    What You Can Do:

    If you purchased or otherwise acquired the stock of MetLife (NYSE: MET) during the period between February 2, 2010 and October 6, 2011, inclusive (the “Class Period”) and either lost money on the transaction or still hold the shares, you may contact Gilman Law LLP by March 12, 2012 to seek appointment as lead plaintiff and discuss your rights to recovery of your losses or to obtain additional information.

    About Gilman Law LLP:

    The attorneys at Gilman Law have over 40 years of experience representing both individual and institutional investors in securities class action suits and all major aspects of securities litigation. Our firm has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of MetLife’s fraudulent practices. For a free evaluation of your case or to obtain additional information, CALL TOLL FREE (888) 252-0048.