Robbins Geller Obtains $33 Million for Prudential Investors
On September 29, 2016, the Honorable Madeline Cox Arleo of the United States District Court for the District of New Jersey granted final approval of a $33 million settlement for investors in the Prudential securities class action.
Prudential Financial, Inc. is a financial services company that offers a wide array of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management and real estate services. First filed in August 2012, the complaint alleged that Prudential and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements concerning the company’s current and future financial condition, including its reserves and liabilities for millions of dollars in benefits that should have been paid out to policyholder beneficiaries or escheated to the states. Specifically, plaintiffs alleged that Prudential’s financial statements failed to properly account for deceased policyholders who were listed on the Social Security Administration Death Master File, which caused the company’s reported earnings to be materially overstated. The alleged misrepresentations caused Prudential’s stock price to trade at artificially inflated levels during the May 5, 2010 through November 4, 2011 class period.
Robbins Geller attorneys “vigorously litigated” the case through the motion to dismiss, class certification and Daubert motions.
In granting final approval, Judge Arleo commended the "vigorous and skilled efforts” of Robbins Geller for obtaining “an excellent recovery.” Judge Arleo added that the settlement was reached after “contentious, hard-fought litigation” that ended with “a very, very good result for the class” in a “risky case.”
City of Sterling Heights General Employees’ Retirement System v. Prudential Financial, Inc., et al., No. 2:12-cv-05275-MCA-LDW (D.N.J.).