A securities class action has been filed against Lincoln National Corporation (LNC) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Lincoln National Corporation securities between November 4, 2020 through November 2, 2022.  This case has been filed in the USDC – E.D.PA.

Lincoln National is a holding company which operates multiple insurance and retirement businesses through subsidiary companies.

The Lincoln National class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Lincoln National was experiencing a decline in its variable universal life insurance business; (ii) as a result, the goodwill associated with the life insurance business was overstated; (iii) consequently, Lincoln National’s policy lapse assumptions were outdated; (iv) thus, Lincoln National’s reserves were overstated; and (v) as such, Lincoln National’s reported financial results and financial statements were misstated.

The Lincoln National class action lawsuit further alleges that on November 2, 2022 Lincoln National reported a net loss of $2.6 billion for the third quarter of 2022, compared to a net income of $318 million for the third quarter of 2021 the previous year. Lincoln National explained “[t]he current quarter’s adjusted operating results included net unfavorable notable items of $2.0 billion, or $11.62 per share, related to the company’s annual review of [deferred acquisition costs] and reserve assumptions” and also disclosed that it “incurred a $634 million goodwill impairment to the life insurance business,” according to the complaint. On this news, Lincoln National’s stock price fell more than 33%, the Lincoln National class action lawsuit further alleges.