An investment group in Canada has received a significant financial boost after the settlement of a class action lawsuit.
According to a report by the Canadian Press
, Alberta Investment Management Corporation (AIMCo) will pick up a share of US$219 million after a US insurance company agreed to the pay out to conclude a suit in which it was alleged to have made misleading or false statements about a group that included the Alberta investor.
The US insurer in question is Genworth Financial, with plaintiffs arguing that its financial statements and executives had not correctly disclosed information before the company made an announcement in November 2014 that it would be necessary to shore up its long term care insurance business.
Following the announcement of a $531 million accounting charge, there was a substantial fall in the value of stock in Genworth held by its investors. The insurer itself continues to state, however, that the claims against it do not have merit – but that it will make payments in order to avoid any further risks and costs in court.
AIMCo, based in Edmonton, was among the leading plaintiffs in the case alongside Fresno County Employees’ Retirement Association, which is based in California. AIMCo makes investments on behalf of 26 government, endowment and pension funds.
An agreement to a settlement has been reached in principle: however, it still requires official approval from the US district court.