This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Prudential Gets Rocked

Prudential Financial (PRU - Get Report) once again wound up the loser in a contentious $14.5 million investor arbitration case.

A New York state judge refused to overturn a decision earlier this year by an arbitration panel, awarding $14.5 million in damages to a New York couple. The arbitration award is one of the largest handed down by a New York Stock Exchange panel.

It's rare for courts to overturn a arbitration decision, unless there is evidence a panel clearly disregarded the law.

In May, the three-arbitrator panel awarded $11.8 million in damages plus interest and legal fees to Charanjit and Harpreet Sahni, a married couple living on Long Island, N.Y. The couple alleged that a group of brokers at what used to called Prudential Securities mismanaged their money, causing losses in excess of $21 million in early 2000.

By 2004, the Sahnis' once $23 million brokerage account had shrunk to about $1 million.

In 2003, Prudential and Wachovia (WB - Get Report) entered into a joint venture in which Prudential sold a majority stake in its brokerage operation to the Charlotte, N.C. lender.

Shortly after the arbitrators issued their decision, a Prudential spokesman said the big insurer was considering asking a judge to vacate the award. A Prudential spokesman could not be reached for comment on New York Supreme Court Justice Walter Tolub's decision upholding the award.

"The award against Prudential is obviously very substantial, and we always believed it was appropriate,'' says Robert Kraus, one of the lawyers for the Sahni family. "It is gratifying to see the process work in this case and the Supreme Court uphold the award.''

Kraus worked on the case with noted shareholder attorney Thomas Ajamie.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PRU $76.27 0.00%
WB $23.30 0.00%
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs