Prudential Financial Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Prudential Financial Inc. (“Prudential” or the “Company”) (NYSE: PRU) securities during the period from February 15, 2019 through August 2, 2019 (the “Class Period”). Investors have until January 27, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Prudential failed to disclose that: (i) the Company’s reserve assumptions failed to account for adversely developing mortality experience in its Individual Life business segment; (ii) 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 (iii) the Company had materially understated its liabilities and overstated net income as a result of flawed assumptions in calculating mortality experience.
On July 31, 2019 and August 1, 2019, the Company announced disappointing second quarter 2019 financial results and disclosed that the Company would take a pre-tax charge of $208 million as a result of its market experience update. Prudential revealed that the change in mortality assumptions 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, the price of Prudential shares fell $10.22, or 10.1%, to close at $91.09 per share on August 1, 2019.
On August 2, 2019, Prudential filed its quarterly report on Form 10-Q with the SEC for the second quarter of 2019, which provided additional information, including that the $208 million pre-tax charge to reserves was entirely attributable to the Individual Life business segment. On this news, the price of Prudential shares fell $2.61, or 5.6%, to close at $85.95 per share on August 5, 2019.
If you acquired Prudential securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.