A lawsuit that could have far-reaching effects has been filed by policyholders of Prudential Life Insurance Co.
The suit brought against the company and its directors and senior officer alleges that the directors and senior officers have breached their fiduciary duties by spending millions of Prudential’s money to present an expensive package as a smokescreen for the personal gain of management.
Prudential, founded 125 years ago as the “Widows and Orphans Friendly Society” is a $260 billion company and is owned by its policyholders. As a mutual insurance company, the company which has long had the Rock of Gibraltar as its trade mark, is owned by its policyholders.
If current management is successful, the ownership of the “Rock” will be placed in the hands of the public. The lawsuit was brought on behalf of a class of plaintiffs who have used their hard-earned money to purchase a policy from Prudential going back as far as 1937 during the Great Depression.
“They will not stand by and let Wall Street take from them what they worked so faithfully, so long and so hard for,”says Robert A. Holstein, one of plaintiff’s counsel.
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