Unum Group Shareholders Lose Long-Term Care Policy Fraud Suit

Unum Group defeated a securities fraud lawsuit over deflated stock prices resulting from losses associated with its long-term care insurance policies because shareholders didn’t show the company’s officers intended to deceive them, the Sixth Circuit said Monday.

The shareholders didn’t raise an inference the company intended to manipulate or defraud them that was “cogent and at least as compelling as any opposing inference of nonfraudulent intent,” the U.S. Court of Appeals for the Sixth Circuit said in an unpublished opinion.

Unum sells disability, life, accident, critical-illness, and other types of insurance. It also sold long-term-care policies, which were designed to ...