Faruqi and Faruqui, LLP Logo
Share this page

Faruqi & Faruqi Is Appointed Lead Counsel to Represent Genworth Investors for False and Misleading Statements Regarding $2.7 Billion Sale of Company

August 26, 2017

After a protracted and closely watched lead plaintiff fight, Faruqi & Faruqi LLP prevailed, and, along with its co-counsel, Kahn Swick & Foti LLC, was appointed lead counsel in the case of Rice et al. v. Genworth Financial Inc. et al., case number 3:17-cv-00059, pending in United States District Court the Eastern District of Virginia before Judge Robert Payne.

Faruqi & Faruqi represents investors Brian James and Alexander Rice, known as the James/Rice Investor Group, in their challenge to the insurer’s $2.7 billion sale.  While the James/Rice Investor Group did not have the largest losses of the competing movants, F&F argued that Scott + Scott LLP and Johnson & Weaver LLP should not be named lead counsel because they suffered from numerous incurable conflicts of interest stemming from their simultaneous prosecution of two related actions in Delaware court- a derivative action filed on behalf of Genworth itself, and a books and records case seeking privileged and confidential information from Genworth.

“The conflict of interest between the Delaware actions and the instant action has not, and cannot, be cured,” the Rice group said.  After the filing of six briefs by the James/Rice Investor Group, two hearings handled by James Wilson of Faruqi & Faruqi, and several letters to the Court from both sides, the Court appointed the James/Rice Investor Group to be Lead Plaintiffs and their counsel, Faruqi & Faruqi and Kahn Swick & Foti LLC, to be Lead Counsel.

<< Back