PRU.US

id: 1102

Prudential Financial (PRU) Investor Settlement

It is still possible to file a late claim. The court will decide whether to accept late claims or not.

D. New Jersey

Court

2:19-cv-20839

Case number

05 Jun 2019

Class period Start

02 Aug 2019

Class period End

30 Jul 2024

Claim deadline

Prudential 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

27 November 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

13 June 2024

Exclusion deadline

23 May 2024

Objection deadline

23 May 2024

Hearing deadline

23 May 2024

Trades matching type

FIFO

+$35,000,000

Cash Settlement Amount

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