Market Overview

Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Unum Group


Geller Rudman & Dowd LLP
today announced that a class action has been commenced by an
institutional investor on behalf of purchasers of Unum Group (NYSE:UNM)
securities during an expanded period between October 27, 2016 and May 1,
2018 (the "Class Period"). This action was filed in the Eastern District
of Tennessee and is captioned City of Taylor Police and Fire
Retirement System v. Unum Group, et al.
, No. 18-cv-00169.

The Private Securities Litigation Reform Act of 1995 permits any
investor who purchased Unum securities during the Class Period to seek
appointment as lead plaintiff. A lead plaintiff acts on behalf of all
other class members in directing the litigation. The lead plaintiff can
select a law firm of its choice. An investor's ability to share in any
potential future recovery is not dependent upon serving as lead
plaintiff. If you wish to serve as lead plaintiff, you must move the
Court no later than 60 days from June 13, 2018. If you wish to discuss
this action or have any questions concerning this notice or your rights
or interests, please contact plaintiff's counsel, Darren
of Robbins Geller at 800/449-4900 or 619/231-1058, or via
e-mail at You can
view a copy of the complaint as filed at

The complaint charges Unum and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. Unum offers
disability, life, accident, critical illness, dental and vision
insurance products and other related services marketed primarily through
the workplace in the United States and the United Kingdom. Unum operates
through five business segments: Unum U.S., Unum U.K., Colonial Life,
Corporate, and Closed Block.

Unum's Closed Block segment consists of individual disability, group and
individual long-term care, and other insurance products that the Company
no longer markets. In assessing the performance of Unum's long-term care
insurance, a key metric that investors pay close attention to is the
product's interest adjusted loss ratio. Prior to the Class Period,
following a review of its long-term care portfolio to ensure that its
underlying assumptions were extremely conservative and unlikely to lead
to losses, Unum told investors to expect a long-term loss ratio in the
85% to 90% range.

The complaint alleges that throughout the Class Period, defendants made
materially false and misleading statements and/or failed to disclose
material adverse facts about the Company's business, operations and
prospects. Specifically, defendants failed to disclose that: (i) the
Company was experiencing a higher claims incidence for its long-term
care business; (ii) the Company was experiencing less favorable policy
terminations in connection with its long-term care business; (iii) the
Company had grossly miscalculated the actuarial assumptions underlying
its long-term care business; (iv) premium price hikes could not
sustainably offset increasing losses related to the Company's long-term
care business; (v) the Company was subject to a much greater risk of
catastrophic losses and major reserve charges than represented to
investors; and (vi) as a result of the foregoing, the Company would not
be able to maintain its long-term care interest adjusted loss ratio in
the 85% to 90% range. As a result of defendants' false statements and/or
omissions, Unum securities traded at artificially inflated prices during
the Class Period.

Then, after the market closed on May 1, 2018, and despite defendants'
prior assurances, Unum stunned investors when it reported that the
Company's first quarter 2018 loss ratio for its long-term care business
had ballooned to 96.6%, compared to only 88.6% for the first quarter of
2017. The first quarter 2018 loss ratio also far exceeded the 85% to 90%
long-term range and even the "low 90s" near-term range the Company had
previously provided to investors. The next day, the Company hosted a
conference call to discuss its first quarter 2018 financial results
during which the Company's Chief Financial Officer stated that the
volatility experienced in Unum's long-term care business was expected to
"continue in the future." On this news, the price of the Company's stock
fell $8.12 per share, or nearly 17%, to close at $39.78 per share on May
2, 2018, on abnormally high trading volume.

Plaintiff seeks to recover damages on behalf of all purchasers of Unum
securities during the Class Period (the "Class"). The plaintiff is
represented by Robbins Geller, which has extensive experience in
prosecuting investor class actions including actions involving financial

Robbins Geller is one of the world's leading law firms representing
investors in securities litigation. With 200 lawyers in 10 offices,
Robbins Geller has obtained many of the largest securities class action
recoveries in history. For five consecutive years, ISS Securities Class
Action Services has ranked the Firm in its annual SCAS Top 50 Report as
one of the top law firms in both amount recovered for shareholders and
total number of class action settlements. Robbins Geller attorneys have
helped shape the securities laws and recovered tens of billions of
dollars on behalf of aggrieved victims. Beyond securing financial
recoveries for defrauded investors, Robbins Geller also specializes in
implementing corporate governance reforms, helping to improve the
financial markets for investors worldwide. Please visit
for more information.

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