Prudential Financial, Inc. (PRU)


Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 Investing In Prudential Financial, Inc. To Contact The Firm

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, please fill out the form below. 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 rgonnello@faruqilaw.com.

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 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 5.64% two trading-day drop.

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Prudential Financial, Inc. (PRU)

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Details

Filed on 12/02/2019

Ticker NYSE:PRU

Lead Plaintiff Deadline 01/27/2020

42 days remaining

Office

685 Third Avenue 26th Floor

10017 New York, New York

Phone (212) 983-9330

Fax (212) 983-9331

Counsel

Richard W. Gonnello rgonnello@faruqilaw.com Phone (212) 983-9330 Fax (212) 983-9331

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