PHILADELPHIA, April 17, 2009 (GLOBE NEWSWIRE) -- (This corrects a release issued on April 17, 2009 and clarifies Fitch Ratings as the source of February 19, 2009 information on Prudential Financial Inc.'s investment results, earnings performance and capital levels.) The law firm of Spector, Roseman Kodroff & Willis, P.C. announces that a class action lawsuit was commenced in the United States District Court for the District of New Jersey, on behalf of purchasers of the depositary shares of the 9% Junior Subordinated Notes (the "Securities") of Prudential, who purchased the securities pursuant to the Company's June 2008 initial public offering of the Securities (the "IPO" or the "Offering"), seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act").
On June 24, 2008, the Company conducted an Offering of securities with the filing of a Prospectus Supplement, which is part of the Registration Statement, with the SEC. The Offering was successful as the Company was able to raise over $920 million by selling 36.8 million shares of the Securities to investors at a price of $25 per share.
The Complaint alleges that Prudential and certain of its officers, directors, underwriters and auditor with violations of the Securities Act for issuing a false Prospectus. Specifically, the Complaint alleges that the Defendants failed to disclose and misrepresented: (1) that the Company's goodwill associated with certain subsidiaries was more greatly impaired than the Company had disclosed; (2) that the Company's asset-backed securities collateralized with subprime mortgages were more greatly impaired than the Company had disclosed; (3) that the Company did not properly record losses for impaired assets; (4) that the Company lacked adequate internal controls; and (5) that, as a result of the foregoing, the Company's Registration Statement and Prospectus was false and misleading at all relevant times.
On February 4, 2009, Prudential began to announce write-downs of the Company's goodwill associated with certain subsidiaries, as well as write-downs associated with the Company's exposure to subprime mortgages. Then, on February 19, 2009, a press release issued by Fitch Ratings revealed that the Company's exposure to volatile credit and investment market conditions was negatively impacting its investment results, earnings performance and capital levels. Additionally, the article revealed that Prudential had above average exposure to subprime residential mortgage-backed securities and commercial mortgage-backed securities. As a result of the disclosures and adverse news, the price of the Securities declined in value, closing on February 19, 2009 at $16.09.
If you purchased Prudential Securities, you may, no later than May 11, 2009, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Prudential securities during the Class Period, please contact Spector, Roseman Kodroff & Willis, P.C. at classaction@srkw-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time. If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman or David Felderman toll-free at 888-844-5862 or via E-mail at classaction@srkw-law.com. For more detailed information about the firm please visit its website at http://www.srkw-law.com.
Spector, Roseman Kodroff & Willis, P.C., with offices in Philadelphia, Pennsylvania and Washington, D.C., concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.
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