RM LAW, P.C. has commenced an investigation into potential securities law violations by certain officers of Citizens, Inc. (“Citizens” or the “Company”) (NYSE: CIA).
If you purchased shares of Citizens and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
On March 8, 2017, an article was published stating that “Citizens sells insurance policies through a network of brokers who prey on foreign families and retirees with promises of ‘guaranteed returns’ backed by U.S. Treasuries that will secure retirements.” But, the article charged, a portion of premiums paid by policyholders is sent to Citizens’s transfer agent to make open market purchases of Citizens stock – thus artificially propping up Citizens’s stock price.
On March 16, 2017, a lawsuit was filed against Citizens, Inc. over alleged securities laws violations. The plaintiff claims that the defendants made false and/or misleading statements and/or failed to disclose that Citizens’ brokers and pitchbooks falsely claimed that most of the funds from its insurance policies were directly invested in U.S. Treasury Bond, that funds from Citizens’ insurance policies were funneled into continuous open market purchases that inflated Citizens’ stock price, and that as a result, defendants’ statements about Citizens’ business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.