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Frequently Asked Questions






What is this Settlement about?

A Settlement was approved in a class action lawsuit on behalf of certain individuals who were employed by PRUDENTIAL SECURITIES, INC. and PRUDENTIAL EQUITY GROUP, LLC (collectively referred to as "Prudential"). The Settlement covers several pending lawsuits ("Lawsuits") against Prudential, which have been consolidated in the U.S. District Court for the Central District of California.

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What does the Settlement allege?

The Lawsuits allege that Prudential should have paid its employees in the Covered Positions overtime pay under the federal Fair Labor Standards Act (the "FLSA") and under state law because they do not qualify as "exempt" under the FLSA or applicable 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.

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Who is included in the Settlement Class?

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.

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What are my options?

You could have either: (A) remained in the Class and claimed money under the Settlement; 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. If you remained in the Class and either claimed money under the Settlement or did nothing (options A or C), you are represented at no cost to yourself by Class Counsel. Class Counsel cannot represent you if you chose to object to any aspect of the Settlement. You may retain counsel at your own expense to represent you if you wish. If you did not exclude yourself from the Settlement (Option D), you will remain subject to the Judgment that has been entered in this Lawsuit, and you will be precluded from bringing any "Settled Claims" against Prudential or any other Prudential Releasee whether or not you filed a timely and valid Claim Form or objected to the Settlement.

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What does the Settlement Consideration include?

Prudential is paying $11 million into an interest bearing account in full and final settlement of the Lawsuits. The funds in the Settlement Account, including all interest accruing thereon (together, the "Settlement Consideration") will be used to pay all timely and valid claims of participating Class members, as well as the attorney's fees and litigation expenses of the plaintiffs' attorneys, the enhancement payments to the Class Representatives, and the costs of claims administration.

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How do I participate in the Settlement?

If you wanted to remain in the Class and claim money under the Settlement, you must have completed a Claim Form, without redaction, deletion or revision of any of the release, waiver and covenant not to sue language on the form, and returned it by mail to the Claims Administrator postmarked no later than April 8, 2009. If your Claim Form was not postmarked by that date, or was incomplete, you will not receive any payment but you will be bound by the terms of the Settlement, including the Release of Claims. For more details, please consult the Notice of Class Action Settlement which you should have received in the mail.

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How will the Settlement Consideration be allocated?

Class members who filed timely and valid claims in accordance with the procedure described in the Notice of Class Action Settlement ("Notice") will receive a Settlement payment based on: (1) what Covered Position(s) they were employed in by Prudential; (2) the state or states where they were so employed; and (3) the number of months they were so employed in such Covered Position(s) during the applicable Recovery Period, where a "month" refers to a calendar month in which the Class member was actively employed by Prudential in a Covered Position for at least 16 calendar days. For more details, please consult the Notice of Class Action Settlement which you should have received in the mail.

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How will Attorney's Fees, Litigation Expenses, Enhancement Payments and Costs of Claims Administration be paid?

The Court has awarded the plaintiffs attorneys 25% of the Settlement Consideration as attorney's fees for handling the Lawsuits on behalf of the Class, plus litigation expenses they incurred on behalf of the Class, in the amount of $2,750,000 plus expenses. The Court has awarded the Class Representatives $20,000 each for the time they spent, and the risk they undertook, in bringing and prosecuting the Lawsuits on behalf of the Class, and authorized payment of the fees and costs of the Claims Administrator in administering the Settlement in the amount of $164,925.45. These amounts will be paid from the Settlement Consideration.

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How do I object to the Settlement?

The deadline to object to the Settlement was April 8, 2009. If you filed a written objection to the Settlement, you or your attorney could also have appeared in Court to argue your objection at the Final Approval Hearing.

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How do I get out of the proposed Settlement?

The deadline to exclude yourself from the Settlement was April 8, 2009. If you submitted a Request for Exclusion Form after that date, your Request for Exclusion Form was rejected and you will remain a member of the Class and be bound by the terms of the Settlement, including the Release of Claims. For more details, please consult the Notice of Class Action Settlement which you should have received in the mail.

If you submitted a timely and valid Request for Exclusion Form, you will no longer be a member of the Class and will receive no moneys under the Settlement, but you will retain whatever claims you may have against Prudential with regard to the Settled Claims.

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When is the Final Approval Hearing?

The Court held a hearing on May 11, 2009 and approved the Settlement as fair, reasonable, adequate and in the best interests of the Class. The Court granted Class Counsel's motion for attorney's fees, litigation expenses, and Class Representative enhancements. The Court is located at 411 West Fourth Street, Courtroom 9D, Santa Ana, California 92701.

YOU COULD HAVE, BUT WERE NOT REQUIRED TO, APPEAR AT THE HEARING.

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How do I get additional information?

This is a summary of the basic terms of the Settlement. For the precise terms and conditions of the Settlement, you should consult the "Stipulation of Settlement of Claims Against the Prudential Defendants," which is on file with the Clerk of the Court. If you have any questions about the Settlement, you may contact either Class Counsel or the Claims Administrator at the addresses and telephone numbers listed above. PLEASE DO NOT TELEPHONE THE COURT. For more details, please consult the Notice of Class Action Settlement which you should have received in the mail. You also may consult the Summary Notice available on this website.

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