MetLife Agrees to Pay $84 Million to Settle Class Action
From the Desk of Jim Eccleston at Eccleston Law LLC:
MetLife has agreed to pay $84 million to settle class action claims that it underreported life insurance death benefit liabilities and misled investors. The settlement concludes eight years of litigation, which included multiple formal mediation sessions. The original complaint was filed in 2012, and the class was certified in 2017. The class of plaintiffs includes investors who acquired MetLife common stock during certain offerings in 2010 and 2011.
According to the lawsuit, MetLife found out that there was a $25 million deficit in reserve funds. Despite this discovery, MetLife represented to investors that its reserve funds were adequate in 2010. Because of these alleged misrepresentations, the plaintiffs allege that MetLife’s stock traded at an artificially high price in 2010. Plaintiffs alleged that MetLife’s stock price fell in 2011 when the reserve fund deficiencies became public.
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Related Attorneys: James J. Eccleston
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