The name may have changed, but the lawsuits keep rolling in. Prudential Securities, formerly Prudential-Bache Securities, is a target of a $1.3 billion civil suit filed in federal court in New York on Mar. 4. The complaint seeks the return of money invested in 26 energy income limited partnerships that Pru-Bache marketed between 1983 and 1990. Also named as defendants are parent Prudential Insurance and Graham Resources, which co-managed with Prudential Securities the oil and natural gas properties purchased with investor funds. Prudential will contest the charges; Graham declines to comment.
The lawsuit claims that offering documents overstated the funds' yields. Pru-Bache has already been named in earlier suits seeking more than $2 billion in damages for limited partnerships sold during the 1980s.