The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Prudential Financial, Inc. In...
January 15 2020 - 2:31PM
Business Wire
The Law Offices of Frank R. Cruz announces that a class action
lawsuit has been filed on behalf of investors that acquired
Prudential Financial, Inc. (“Prudential” or the “Company”) (NYSE:
PRU) common stock between February 15, 2019 and August 2,
2019, inclusive (the “Class Period”). Prudential investors have
until January 27, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to
participate.
On August 1, 2019, Prudential revealed a $208 million charge to
its second quarter 2019 earnings due to changes in mortality
assumptions in its Individual Life business segment. Additionally,
the Company revealed that the change in mortality assumptions would
negatively impact quarterly earnings by $25 million for the
foreseeable future.
On this news, Prudential's stock price fell $10.22, or over 10%,
to close at $91.09 per share on August 1, 2019, thereby injuring
investors.
Then on August 2, 2019, Prudential disclosed that the Individual
Life segment declined by $178 million over the prior year period,
primarily due to the $208 million charge.
On this news, Prudential's stock price fell $2.53, or over 5%,
to close at $88.56 per share on August 2, 2019, thereby injuring
investors further.
The complaint filed in this class action alleges that throughout
the Class Period, Defendants made materially false and/or
misleading statements, as well as failed to disclose material
adverse facts about the Company’s business, operations, and
prospects. Specifically, Defendants failed to disclose to
investors: (1) that the Company’s reserve assumptions failed to
account for adversely developing mortality experience in its
Individual Life business segment; (2) that the Company was not
over-reserved, but instead, its reported reserves, particularly for
the Individual Life business segment, were insufficient to satisfy
its future policy benefits liabilities; and (3) that the Company
had materially understated its liabilities and overstated net
income as a result of flawed assumptions in calculating mortality
experience.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Prudential securities during the Class Period,
you may move the Court no later than January 27, 2020 to ask
the Court to appoint you as lead plaintiff. To be a member of the
Class you need not take any action at this time; you may retain
counsel of your choice or take no action and remain an absent
member of the Class. If you purchased Prudential securities, have
information or would like to learn more about these claims, or have
any questions concerning this announcement or your rights or
interests with respect to these matters, please contact Frank R.
Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the
Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007,
by email to info@frankcruzlaw.com, or visit our website at
www.frankcruzlaw.com. If you inquire by email please include your
mailing address, telephone number, and number of shares
purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20200115005780/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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