Lincoln National Corporation Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Lincoln National Corporation (LNC).

If you purchased or held Lincoln National securities and suffered losses, you may be eligible to seek corporate reforms, the return of funds back to the Company, and a court approved incentive award at absolutely no cost to you.

About Lincoln National

Lincoln National Corporation is a multi-line insurance and retirement holding company. Incorporated in Indiana, the company operates under the marketing name “Lincoln Financial” and is headquartered in Radnor, Pennsylvania.

Its principal business lines include annuities, life insurance, retirement plan services, and group protection products, serving a broad range of institutional and individual clients.

What’s Being Investigated

The investigation centers on allegations that Lincoln National and certain executives failed to disclose material information regarding the company’s financial position and risk controls during a key period.

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 same quarter in 2021.

The company attributed this loss to “net unfavorable notable items of $2.0 billion, or $11.62 per share, related to the company’s annual review of DAC and reserve assumptions,” and a $634 million goodwill impairment in its life insurance business.

Investors allege that as a result of this news, the stock plunged by more than 30% midday, causing significant losses and damages.

On April 23, 2024, Lincoln National and certain executives were named in a securities class action lawsuit, which alleges that the company failed to disclose material information to investors during the relevant period, potentially violating federal securities laws. This litigation remains ongoing.

Key Timeline

• November 2, 2022: Lincoln National releases third-quarter 2022 financial results, disclosing a $2.6 billion net loss, citing a $2.0 billion charge from its annual review of DAC and reserve assumptions and a $634 million goodwill impairment in its life insurance business. Investors allege this event revealed previously undisclosed risks and assumptions affecting the company’s financial position.
• November 3, 2022: The stock falls by more than 30%. The class action complaint alleges this caused significant harm to investors.
• April 23, 2024: Securities class action lawsuit filed against Lincoln National and certain executives in the Eastern District of Pennsylvania, alleging failures to disclose material information regarding reserves, assumptions, and goodwill. Investors contend these alleged omissions led to significant stock price declines and losses.

Why Investors May Be Concerned

Investors and stockholders allege that Lincoln National may have made misleading statements or failed to disclose key information about its reserve assumptions, DAC reviews, and goodwill impairment processes. The complaint contends that the company’s internal controls and board-level oversight systems may not have adequately identified or escalated risks tied to actuarial assumptions and capital adequacy.

Additional concerns raised by investors include:

• Whether the board and key officers had sufficient systems for monitoring mission-critical risks, such as policyholder lapse rates and reserve adequacy.
• Potential delays in recognizing adverse trends or external industry data in the company’s financial reporting.
• The adequacy of disclosures in proxy statements about risk oversight and internal controls.

Your Rights and Next Steps

This is an active investigation into potential claims against Lincoln National’s board and officers. If you purchased or held Lincoln National shares during the relevant period and suffered losses, you may have certain rights.

Potential next steps include:

• Make a written demand on the company’s board under Indiana law, outlining concerns and requesting an independent investigation.
• Seek to inspect corporate books and records to develop evidence supporting possible claims.
• Participate in or monitor the ongoing securities class action for developments relevant to your interests.
• If warranted by the investigation, pursue a derivative lawsuit on behalf of the company, which may seek monetary recovery or governance reforms.

Shareholder derivative actions under Indiana law require careful adherence to procedural rules, including written demand and possible review by a Special Litigation Committee.

You May Be Entitled to Compensation

If you purchased Lincoln National Corporation (NYSE: LNC) prior to November 2, 2022, and still hold some shares today, you can seek corporate reforms, the return of funds back to the Company, and a court approved incentive award at absolutely no cost to you.

Securities investigations are time-sensitive, and your ability to participate in any future recovery or governance reforms may depend on timely action.

To join the investigation and help protect your interests, complete the form below.