GENWORTH FINANCIAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
In January 2016, Genworth Financial, Inc., its current chief executive officer, its former
chief executive officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by International Union of Operating Engineers Local No. 478 Pension Fund,
Richard L. Salberg and David Pinkoski in the Court of Chancery of the State of Delaware. The case was captioned
Intl Union of Operating Engineers Local No.
478 Pension Fund, et al v. McInerney, et al.
In February
2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its former chief financial officer and current and former members of its board of directors were named in a second shareholder derivative suit
filed by Martin Cohen in the Court of Chancery of the State of Delaware. The case was captioned
Cohen v. McInerney, et al
. On February 23, 2016, the Court of Chancery of the State of Delaware consolidated these derivative suits under the
caption
Genworth Financial, Inc. Consolidated Derivative Litigation
. On March 28, 2016, plaintiffs in the consolidated action filed an amended complaint. The amended complaint alleges breaches of fiduciary duties concerning
Genworths long-term care insurance reserves and concerning Genworths Australian mortgage insurance business, including our plans for an IPO of the business and seeks unspecified damages, costs, attorneys fees and such equitable
relief as the court may deem proper. The amended consolidated complaint also adds Genworths current chief financial officer as a defendant, based on the current chief financial officers alleged conduct in her former capacity as
Genworths controller and principal accounting officer. We moved to dismiss the consolidated action on May 27, 2016. Thereafter, plaintiffs filed a substantially similar second amended complaint which we moved to dismiss on
September 16, 2016. The motion is fully briefed and awaiting disposition by the court.
In October 2016, Genworth Financial, Inc.,
its current chief executive officer, its former chief executive officer, its current chief financial officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit
filed by Esther Chopp in the Court of Chancery of the State of Delaware. The case is captioned
Chopp v. McInerney, et al.
The complaint alleges that Genworths board of directors wrongfully refused plaintiffs demand to commence
litigation on behalf of Genworth and asserts claims for breaches of fiduciary duties, waste, contribution and indemnification, and unjust enrichment concerning Genworths long-term care insurance reserves and concerning Genworths
Australian mortgage insurance business, including our plans for an IPO of the business, and seeks unspecified damages, costs, attorneys fees and such equitable relief as the court may deem proper. We filed a motion to dismiss on
November 14, 2016.
In December 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive
officer, two former chief financial officers, and two of its insurance subsidiaries were named as defendants in a putative class action lawsuit captioned
Leifer, et al v. Genworth Financial, Inc., et al,
in the United States District Court
for the Eastern District of Virginia, Richmond Division. Plaintiffs allege that the defendants financial disclosures and alleged misrepresentations concerning Genworths long-term care insurance reserves caused harm to current and former
long-term care insurance policyholders and seek unspecified damages, declaratory and injunctive relief, attorneys fees, costs and
pre-judgment
and post-judgment interest. We filed a motion to dismiss on
March 27, 2017. Plaintiffs filed an amended complaint on April 10, 2017. We filed a motion to dismiss on May 22, 2017. On June 20, 2017, plaintiffs filed a notice of voluntary dismissal without prejudice. On June 26, 2017,
the court so ordered the notice of withdrawal of first amended complaint and of voluntary dismissal without prejudice against all defendants.
In January 2017, two putative stockholder class action lawsuits, captioned
Rice v. Genworth Financial Incorporated
,
et al
, and
James v. Genworth Financial, Inc. et al,
were filed in the United States District Court for the Eastern District of Virginia, Richmond Division, against Genworth and its board of directors. A third putative stockholder class action lawsuit
captioned
Rosenfeld Family Trust v. Genworth Financial, Inc. et al,
was filed in
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