LOS ANGELES--(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.
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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 email@example.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.
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