Lincoln National Corporation Securities Fraud Investigation

Shamis & Gentile, P.A. is investigating potential derivative action claims on behalf of shareholders of Lincoln National Corporation ("Lincoln National" or the "Company") (LNC) against certain of its directors and officers for alleged breaches of fiduciary duties and other violations of law. Concerned shareholders are advised to contact the firm now.

The investigation concerns whether Lincoln National's board of directors and executive officers allegedly breached their fiduciary duties to the Company and its shareholders by failing to maintain adequate internal controls and oversight systems.

On Nov. 2, 2022, Lincoln National reported a net loss of $2.6 billion for the third quarter of 2022, compared to net income of $318 million for the same period 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,” as well as a $634 million goodwill impairment in its life insurance business. These disclosures raised significant questions regarding the adequacy of the Company’s risk management and oversight of actuarial assumptions, reserve setting, and goodwill testing.

Following these events, Lincoln National and certain of its executives were named as defendants in a securities class action lawsuit alleging that they failed to disclose material information regarding the Company’s financial condition and risk exposures during the relevant period, in apparent violation of federal securities laws. The ongoing litigation underscores apparent concerns that the board and senior management may have failed to implement and monitor effective reporting systems for mission-critical actuarial risks, or to respond appropriately to red flags related to policyholder lapse assumptions and reserve adequacy. These alleged oversight failures may have resulted in substantial financial harm to the Company, including increased costs of capital, regulatory exposure, and reputational damage.

A shareholder derivative action seeks to recover damages on behalf of the Company and may result in corporate governance reforms designed to prevent similar misconduct in the future.

Shamis & Gentile, P.A. stands out as an advocate for shareholders seeking corporate accountability and governance reforms. The firm is committed to pursuing derivative actions that benefit companies and their shareholders by recovering damages and implementing meaningful corporate governance improvements. Shamis & Gentile has recovered over $1 billion for consumers nationwide. Its extensive experience, expertise, and resources enable the firm to resolve disputes in a wide range of matters, including derivative actions, class actions and complex commercial litigation.

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