Pru Hires Duke Professor for Restitution Plan

Prudential Financial has hired a Duke University professor as an independent consultant to decide how to repay $270 million to investors, the Newark Star-Ledger reports. That was the portion set aside for investors in the $600 million fine it was sacked with in August for not properly overseeing and preventing some of its brokers from allowing abusive mutual fund trading.

The arbitrator, Francis McGovern, a law professor at Duke who has worked on other settlement cases, has three months to come up with a plan.

The Securities and Exchange Commission hopes to distribute the rest of the $3.3 billion collected on behalf of investors back to them next year.