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Prudential Financial Inc. (NYSE:PRU), a prominent $36 billion insurance industry player with a Fair Value indicating slight undervaluation according to InvestingPro, has reached a settlement in a consolidated derivative lawsuit, as per a court order dated April 7, 2025. The United States District Court for the District of New Jersey granted preliminary approval of the settlement related to the case In re Prudential Financial, Inc. Derivative Litigation, Civil Action (WA:ACT) No.2:20-cv-12772 SRC-CLW.
The company disclosed the settlement to its shareholders through the Long-Form Notice of Pendency and Proposed Settlement of Stockholder Derivative Action and the Stipulation and Agreement of Settlement, both of which are accessible on Prudential (LON:PRU)’s investor relations website. These documents provide detailed information about the terms of the settlement and the process for shareholder involvement.
The derivative action was brought against certain current and former officers and directors of Prudential Financial Inc. The lawsuit alleged breaches of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets, and violations of the federal securities laws. The settlement aims to resolve these claims without any admission of wrongdoing by the defendants. Despite these legal challenges, Prudential maintains strong financial health metrics, with InvestingPro data showing a 24-year track record of consistent dividend payments and a current attractive yield of 5.46%.
As part of the settlement, Prudential has agreed to implement certain corporate governance measures and policies to strengthen oversight and protect shareholder interests. The specifics of these measures have not been disclosed in the settlement notice.
The court has scheduled a final settlement hearing to consider whether the proposed settlement is fair, reasonable, and adequate. The date for this hearing has yet to be announced. If the settlement receives final approval, it will conclude all derivative claims against the defendants in the consolidated action.
This development comes as part of Prudential Financial’s ongoing efforts to address legal challenges and enhance corporate governance practices. The settlement is expected to have a positive impact on the company’s risk management and operational frameworks going forward. With a solid return on equity of 10% and revenue of over $70 billion in the last twelve months, Prudential demonstrates resilient financial performance. For deeper insights into Prudential’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other top US stocks.
The information in this article is based on a press release statement.
In other recent news, Prudential Financial has announced several key developments. The company disclosed changes to its executive compensation programs, which will take effect for awards in 2025, based on 2024 performance. This includes updates to the Annual Incentive Program and the Long-Term Incentive Program, aiming to align leadership interests with Prudential’s performance and strategic goals. Additionally, Prudential has appointed Vicki Walia as its new Chief People Officer, effective March 31, 2025, succeeding Lucien Alziari. Walia, who currently oversees human resources for Prudential’s U.S. operations and its global asset management arm, PGIM, is expected to bring her extensive experience in talent management to the role.
In another development, Prudential has launched OneLeave, a program designed to streamline absence and disability management for employers and employees. This new service integrates leave and disability management into a unified system, offering a more streamlined experience. Moreover, Prudential has enhanced its benefits offerings by adopting Workday Wellness, an AI-powered solution aimed at improving the employee benefits experience. This collaboration with Workday Inc (NASDAQ:WDAY). is expected to optimize data exchange and streamline workplace wellness offerings for Prudential’s Group Insurance clients. Lastly, Kathleen Murphy, a member of Prudential’s Board of Directors, has announced she will not seek reelection at the upcoming annual shareholders’ meeting in May 2025. Murphy’s departure is due to other professional commitments and is not related to any disagreements with the company.
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