A lawsuit was filed on behalf of investors in Prudential Financial, Inc. (NYSE: PRU) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 01/13/2020 -- An investor, who purchased shares of Prudential Financial, Inc. (NYSE: PRU), filed a lawsuit over alleged violations of Federal Securities Laws by Prudential Financial, Inc..
Investors who purchased shares of Prudential Financial, Inc. (NYSE: PRU) have certain options and for certain investors are short and strict deadlines running. Deadline: January 27, 2020. NYSE: PRU investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
On July 31, 2019, Prudential Financial, Inc. announced disappointing second quarter 2019 financial results, including earnings per share of $3.14, which missed analyst consensus estimates by $0.09, and disclosed that the Company would take a pre-tax charge of $208 million as a result of its market experience update. In the earnings release, Prudential Financial, Inc's CEO acknowledged that changes in "mortality assumptions" had negatively impacted the Company's results and would "trim" near-term momentum.
On August 1, 2019, Prudential Financial, Inc. held a conference call to discuss its second quarter 2019 financial results. On the call, defendants 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. As a result of these disclosures, Prudential's stock price declined more than 10% to close at $91.09 per share on August 1, 2019.
Then on August 2, 2019, Prudential Financial, Inc. filed its quarterly report on Form 10-Q with the SEC for the second quarter of 2019, which provided additional information concerning the Company's adjustments to operating income by segment, including that the $208 million pre-tax charge to reserves was entirely attributable to the Individual Life business segment. As a result of these further negative disclosures, Prudential's stock price declined another 5.6%, falling to $88.56 per share on August 2, 2019 and to $85.95 per share on August 5, 2019.
Shares of Prudential Financial, Inc. (NYSE: PRU) declined from $103.54 per share on July 26, 2019 to as low as $77.74 per share on August 27, 2019.
According to the complaint the plaintiff alleges on behalf of purchasers of Prudential Financial, Inc. (NYSE: PRU) common shares between February 15, 2019 and August 2, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 15, 2019 and August 2, 2019, the defendants failed to disclose the following facts the Company's reserve assumptions failed to account for adversely developing mortality experience in its Individual Life business segment, 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 that the Company had materially understated its liabilities and overstated net income as a result of flawed assumptions in calculating mortality experience.
Those who purchased shares of Prudential Financial, Inc. (NYSE: PRU) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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