PRUDENTIAL SHAREHOLDER NOTICE: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 Investing In Prudential Financial, Inc. To Contact The Firm
New York, New York--(Newsfile Corp. - January 23, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Prudential Financial, Inc. ("Prudential" or the "Company") (NYSE: PRU) of the January 27, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Prudential stock or options between February 15, 2019 and August 2, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/PRU. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased Prudential common stock between February 15, 2019 and August 2, 2019 (the "Class Period"). The case, City of Warren Police and Fire Ret. System v. Prudential Financial, Inc., et al., No. 19-cv-20839 was filed on November 27, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company's reserve assumptions failed to account for adversely developing mortality experience in its Individual Life business segment; (2) 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) the Company had materially understated its liabilities and overstated net income as a result of flawed assumptions in calculating mortality experience.
Specifically, on August 1, 2019, the Company held a conference call for analysts and investors to discuss its second quarter 2019 financial results. Following defendants' prepared remarks, analysts sought details regarding the impact of the reserve charge in the Individual Life business segment attributed to the changed mortality assumptions. Defendants revealed that the change in mortality assumptions would have a much more significant effect on the Company's financial condition and would require a negative earnings impact of $25 million per quarter for the foreseeable future, wiping out approximately one-third of the earnings attributable to the Individual Life business segment.
On this news, Prudential's share price fell from $101.31 per share on July 31, 2019 to a closing price of $91.09 on August 1, 2019: a $10.22 or a 10.09% drop.
Then, on August 2, 2019, RBC Capital Markets issued an analyst report commenting on the third quarter 2019 guidance reduction and the impact of the actuarial review on the Individual Life business segment, noting: "We definitely didn't love the reduced guidance for the third quarter and the various guidance items that spill into 2020 estimates:"
On this news, Prudential's share price fell from $91.09 per share on August 1, 2019 to a closing price of $85.95 on August 5, 2019: a $5.14 or a 5.64% two trading-day drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Prudential's conduct to contact the firm, including whistleblowers, former employees, shareholders, and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
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