Plaintiffs v Manulife Financial Corp.
Class Action Considered Over Manulife Disclosures
A law firm known for high profile class action suits announced it is investigating disclosures by insurance giant Manulife Financial Corp. regarding what it called severe risks arising from the companys guaranteed investment business.
Siskinds LLP said in a statement it is considering whether to launch a legal action against Manulife to recover losses that may have been suffered by investors as a result of the disclosures.
The probe comes after the Toronto-based insurer announced it had received an enforcement notice from the Ontario Securities Commission relating to its disclosure prior to March 2009 of potential negative impact from its variable annuity guarantee and segregated fund business.
In recent years Manulife has made significant profits from the sale of guaranteed variable annuity and segregated fund products which proved a hit with investors. But going into the financial crisis those guarantees were unhedged and as a result the company suffered major losses when the market crashed.
Concerns were raised on Bay Street when the company borrowed $3-billion to shore up its capital base.
The company has been aggressively bolstering its balance sheet, raising about $1.35-billion in preferred shares and bonds.
For more information please contact:
Siskinds LLP
Toronto Office
141 Adelaide Street West
Suite 1100
Toronto, Ontario, Canada
M5H 3L5
Phone: (416) 362-8334
Fax: (416) 362-2610
http://www.siskinds.com/
