PRU.US
id: 1102
Prudential Financial (PRU) Investor Settlement
Late claims are being considered for compensation, subject to approval.
D. New Jersey
Court2:19-cv-20839
Case number06/05/2019
Class period Start08/02/2019
Class period End07/30/2024
Claim deadlinePrudential Financial (PRU) agreed to settle $35M with shareholders to end claims for overstating reserves sufficiency in life policy business.
Case Details:
Prudential announced disappointing Q2 2019 financial results on July 31, 2019.
- The company disclosed a pre-tax charge of $208M due to a market experience update.
- CEO attributed the negative impact on results to changes in "mortality assumptions".
On August 1, 2019, Prudential disclosed new mortality assumptions, causing a $25M quarterly earnings loss, erasing a third of Individual Life segment's earnings.
On this news, $PRU dropped by 10% the same day.
Then, on August 2, 2019, Prudential's quarterly report to the SEC revealed that the $208M charge was solely for the Individual Life segment.
$PRU dropped 5.6% on August 2, 2019, following the announcement.
Based on these events, Prudential was accused of the following details:
- They failed to disclose adverse mortality experience in the Individual Life segment.
- Reported reserves were insufficient, leading to understated liabilities and inflated net income.
Prudential has now decided to end all the allegations related to the Individual Life segment issues and pay a $35M settlement.
Case Status
Accepting Late Claims
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
1.57
Filing date
11/27/2019
Plaintiffs
City of Warren Police and Fire Retirement System
Attorneys
Cohn Lifland Pearlman Herrmann & Knopf LLP (Saddle Brook, NJ), Robbins Geller Rudman & Dowd LLP (San Francisco, CA), Seeger Weiss LLP (Ridgefield Park, NJ), VanOverbeke Michaud & Timmony, P.C. (Detroit, MI)
Defendants
Charles F. Lowrey, Kenneth Y. Tanji, Robert M. Falzon
Judge
Stanley R. Chesler
Administrator
Gilardi & Co LLC
Settlement agreement date
2024-02-12
Court hearing date
06/13/2024
Exclusion deadline
05/23/2024
Objection deadline
05/23/2024
Hearing deadline
05/23/2024
Trades matching type
FIFO
+$35,000,000
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