The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Business Wire

Robbins Umeda LLP Announces an Investigation of Prudential Financial, Inc.

Thursday, August 23, 2012

Robbins Umeda LLP Announces an Investigation of Prudential Financial, Inc.19:34 EDT Thursday, August 23, 2012 SAN DIEGO (Business Wire) -- Shareholder rights firm Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors of Prudential Financial, Inc. (NYSE: PRU). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, info@robbinsumeda.com, or via the shareholder information form on the firm's website. Robbins Umeda LLP is investigating whether certain officers and directors of Prudential breached their fiduciary duties and caused damage to the company and its shareholders by issuing materially false and misleading statements concerning: (i) the company's current and future financial condition; (ii) the company's potential liability to policyholders, beneficiaries and relevant state authorities for millions of dollars in benefits that should have been paid out to policyholders or escheated to the states; and (iii) the extent of the company's exposure to claims of state and federal law violations. Specifically, our investigation concerns whether the officers and directors engaged in a scheme to ignore information known or reasonably available to the company resulting in the retention of monies and accounts that should have been paid out to beneficiaries of Prudential's policyholders or escheated to the relevant state authorities after the expiration of the dormancy period. In maintaining funds that otherwise belonged to policyholders' beneficiaries or state unclaimed property funds, Prudential reported strong income and operating earnings while failing to disclose that its reported income was materially overstated due to the company's failure to account and reserve for known liabilities associated with policyholders who had died. On May 6, 2011, the company filed a Form 10-Q for the period ended March 31, 2011, disclosing that it was subject to an audit investigation by certain states regarding compliance with unclaimed property laws for United States jurisdictions. On August 5, 2011, the company filed a Form 10-Q for the period ended June 30, 2011, again disclosing that it was being investigated by a third party auditor on behalf of 33 jurisdictions concerning unclaimed property laws. In addition, Prudential disclosed that it had been subpoenaed by the New York Attorney General regarding its unclaimed property procedures. Then, on November 2, 2011, the Company issued a press release announcing its financial results for the third quarter of 2011. The earnings results of $1.07 per common share missed Wall Street analyst consensus expectations of $1.54 per share. Also in this release, the Company reported that it had taken a $99 million charge to increase reserves related to its usage in the quarter of the Social Security Administration's Death Master File. Robbins Umeda LLP highlights that Prudential shareholders have the option to file a shareholder derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains. Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com. Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/prudential-financial-inc/ Attorney Advertising. Past results do not guarantee a similar outcome. Robbins Umeda LLPGregory E. Del GaizoInfo@robbinsumeda.com(619) 525-3990 or Toll Free (800) 350-6003www.robbinsumeda.com