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Overview

An $11 million class action settlement ("Settlement") has been reached on behalf of certain individuals who were employed by Prudential Securities, Inc. ("Prudential") in the Covered Positions in California, New York, or Pennsylvania. The Court has finally approved the Settlement, resolving several pending lawsuits (the "Lawsuits") against Prudential, which have been consolidated in the U.S. District Court for the Central District of California.

In general, the Lawsuits allege that Prudential should have paid its employees in the Covered Positions overtime pay under the federal Fair Labor Standards Act and under state law. The Lawsuits also allege that Prudential took illegal deductions from the wages of employees in the Covered Positions, in violation of state law. Prudential denies all of the claims and allegations in the Lawsuits and maintains that it complied with all applicable federal and state laws regarding the payment of employees in Covered Positions, and that it properly compensated employees in the Covered Positions at all times.

Who Does the Settlement Class Include?

PLEASE NOTE: THIS SETTLEMENT PERTAINS TO CLAIMS AGAINST PRUDENTIAL DEFENDANTS.

On May 11, 2009, the Court granted final approval of the Settlement and certified the following Class for Settlement purposes only: All individuals who were actively employed by Prudential in the States of California, New York, and/or Pennsylvania in any of the following Covered Positions during the following time periods:

  • Assistant Branch Managers, Assistant Branch Managers-Producing, Associate Branch Managers, Sales Managers, and Satellite Branch Managers (collectively referred to as "Producing Managers"), Financial Advisors ("FAs") and producing Financial Advisors in Training ("FAITs") and Financial Advisors in the Career Development Program ("FACDPs") (collectively referred to as "Producing FAITs and FACDPs") actively employed by Prudential in the State of California at any time from September 13, 2001 to June 30, 2003;
  • FAs and Producing FAITs and Producing FACDPs actively employed by Prudential in the State of Pennsylvania at any time from August 3, 2001 to June 30, 2003;
  • FAs and Producing FAITs and Producing FACDPs actively employed by Prudential in the State of New York at any time from August 30, 1999 to June 30, 2003;
  • Unregistered FAITs and unregistered FACDPs actively employed by Prudential in the State of New York at any time from June 27, 2000 to June 30, 2003; and
  • Producing Managers (as defined above) actively employed by Prudential in the State of New York at any time from April 1, 2002 to June 30, 2003.

Class Member Options

If you are a class member, you had four options. You could have either: (A) remained in the Class and claimed money under the Settlement by returning a completed Claim Form; or (B) remained in the Class and objected to the Settlement; or (C) remained in the Class and done nothing; or (D) excluded yourself from the Class and from the Settlement.

The deadline for filing a claim, objecting to the Settlement, or requesting exclusion from the Settlement was April 8, 2009. For more details, please consult the Notice of Class Action Settlement which you should have received in the mail. You may also view the Summary Notice, which is available on this website.

Final Approval Hearing

The U.S. District Court for the Central District of California held a hearing on May 11, 2009 and determined that the Settlement was fair, reasonable, adequate and in the best interests of the Class. In addition, the Court granted Class Counsel's request for attorney's fees, litigation expenses, and enhanced payments to the named plaintiffs. The Court is located at 411 West Fourth Street, Santa Ana, California 92701. Class members could have, but were not required to, appear at the hearing.

Please note the following important dates:
Date Case-Related Event
April 8, 2009
[Expired]
Claim Form Deadline (postmarked)
April 8, 2009
[Expired]
Request for Exclusion Deadline (postmarked)
April 8, 2009
[Expired]
Objection Filing Deadline (received)
May 11, 2009
at 3:00 p.m.
(Pacific Time)

[Approved]
Final Approval Hearing