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Complaint: Unum made misleading statements on LTC claims incidence

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Complaint: Unum made misleading statements on LTC claims incidence

Unum Group has been accused of making misleading statements related to its long-term care business.

A purported class-action complaint filed in the U.S. District Court in the Eastern District of Tennessee claims that the company, among other things, failed to disclose that it was experiencing a higher claims incidence on its long-term care business.

The company saw its stock fall sharply May 2 after it disclosed that the loss ratio for its long-term care business was 96.6%, up sharply from 88.6% a year earlier.

The company itself, President and CEO Richard McKenney, Executive Vice President and CFO John McGarry, and Chief Accounting Officer and Senior Vice President Daniel Waxenberg are listed as defendants in the complaint.

Another lawsuit with similar allegations has also been filed in the Tennessee federal court, according to a news release.

An Unum spokesperson told S&P Global Market Intelligence that the company does not comment on pending litigation.