On January 31, 2020, the Delaware Court of Chancery denied, in part, motions to dismiss direct fraudulent transfer claims filed by a class of holders of long-term care life insurance policies. As alleged in the Amended Complaint, filed on January 29, 2019, as early as 2012, senior mangement of Genworth Life Insurance Company ("Company") were aware that, due to skyrocketing healthcare costs, the Company was paying out more in claims than it could collect in premiums from policyholders. To make up for the deficit, senior management engaged in a scheme that would, over a multi-year period, transfer billions in Company assets to other affiliates at a time when the Company was insolvent. 

A copy of the Court's Opinion can be accessed here.