Chattanooga, TN: (May-14-08) A class action lawsuit was brought against Chattanooga-based Unum Group, by nearly 186,000 investors, who alleged that the disability insurer artificially inflated its stock price. The suit was filed by investors who bought the company's stock between March 2000 and April 2003, who stated that Unum made misleading statements to artificially inflate its share price.
In a recent announcement, Unum spokespersons said that the company has reached a settlement in the class action suit, in which it will pay $40 million to resolve the 5-year-old suit. The company did not admit any wrongdoing, and continued to deny the allegations, despite the decision to settle. Company spokesman Jim Sabourin claimed that company's earnings report showed the $40 million settlement in 2007. He said Unum agreed to the settlement to avoid further distraction, costs and risks that are usually associated with protracted litigation. A federal judge approved a $40 million settlement for Unum Group investors in early May 2008. [
