Investors Secure $35 Million From Prudential in Securities Fraud Action

A securities fraud case led by lead plaintiff City of Warren Police and Fire Retirement System reached a $35 million settlement, pending court approval. Robbins Geller Rudman & Dowd LLP represented the lead plaintiff during four years of litigation, including successfully appealing the district court’s dismissal to the U.S. Court of Appeals for the Third Circuit.

The case alleges that, during 2019, Prudential and its executives made false and misleading statements in violation of the federal securities laws concerning its insurance reserves and mortality experience in its Individual Life business. In 2020, the district court dismissed the case, finding that allegations based on reports of former Prudential employees should be discounted.

City of Warren Police and Fire Retirement System appealed to the Third Circuit, where Robbins Geller partner Daniel J. Pfefferbaum argued the case before the appellate court. The Third Circuit reversed the district court’s order in part, finding that plaintiff adequately alleged falsity and crediting allegations that were based on the facts provided by former employees. In particular, the Third Circuit credited allegations previously rejected by the district court that as early as May 2019, Prudential was internally discussing that the company “would need to take a significant charge to Individual Life.”

Robbins Geller attorneys Shawn A. Williams, Daniel J. Pfefferbaum, and Hadiya K. Deshmukh represented the lead plaintiff in the case.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex litigation firms, representing plaintiffs in securities fraud, shareholder derivative, antitrust, corporate takeover, and consumer fraud and privacy cases. With 200 lawyers in 10 offices, Robbins Geller is one of the world’s largest plaintiffs’ firms, and the Firm’s attorneys have obtained many of the largest securities, antitrust, and consumer class action recoveries in history.

The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. The Firm secured the largest-ever securities fraud class action settlement – $7.2 billion – in In re Enron Corp. Securities Litigation.

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In re Prudential Fin., Inc. Sec. Litig., No. 2:19-cv-20839-SRC-CLW (D.N.J.).