Prudential Faces Investor Suit Following Death Benefits Audit

Law360, New York (August 22, 2012, 10:20 PM EDT) -- In the wake of a highly critical audit of life insurance companies, a Michigan city filed a putative class action against Prudential Financial Inc. in New Jersey federal court Wednesday, alleging the company misled investors by failing to account for payments to the families of deceased policyholders.

The city of Sterling Heights, Mich., says in a proposed class action that its employee retirement fund suffered losses because of Prudential’s alleged failure to disclose death benefit liabilities in its earnings reports for fiscal year 2010.

The liabilities,...
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