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First Marblehead Corporation (NYSE: FMD) Investor Securities Class Action Lawsuit 04/10/2008

  • If you purchased shares of First Marblehead Corporaton (NYSE: FMD), you might have certain options and should contact the Shareholders Foundation, Inc.

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Lawsuit Overview

Case Dismissed
Company
First Marblehead Corporation
Security
NYSE: FMD

Case Name
First Marblehead Corporation Shareholder Class Action Lawsuit 04/10/2008
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the District of Massachusetts

Class Period Begin
Class Period End
Deadline To File for Lead
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Summary

August 5, 2009 - The court granted the motion to dismiss and ordered the case dismissed.
February 29, 2009 - The defendants filed a motion to dismiss.

November 28, 2008 - The lead plaintiffs filed an amended complaint.

August 28, 2008 - The lead plaintiffs and lead counsel were appointed and all cases were consolidated.

June 9, 2008 - Lead plaintiff motions were filed.

May 12, 2008 - An additional investor filed a complaint on behalf of investors who purchased First Marblehead Corporaton (The) (NYSE: FMD) common shares between September 12, 2006 and April 7, 2008.

April 25, 2008 - An additional investor filed a complaint.

April 18, 2008 - Another investor filed a complaint.

April 10, 2008 - An investor in shares of First Marblehead Corporaton (The) (NYSE: FMD) filed a lawsuit in the U.S. District Court for the District of Massachusetts against First Marblehead Corporaton (The) over alleged violations of Federal Securities Laws between August 10,2006 and April 7, 2008.

The plaintiff alleges that First Marblehead Corporaton (The) and a number of individual defendants violated Sections 10(b) and 20(a) of the Exchange Act, 15 U.S.C. Sections 78j (b) and 78t(a) and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission ( SEC ), 17 C.F.R. Section 240.10b-5.

According to the complaint, First Marblehead Corporaton (The) made materially false and misleading statements about the performance and quality of First Marblehead Corporaton (The)'s securitizations in SEC filings and other statements to the investing public. Among other things, First Marblehead Corporaton (The) misrepresented the level of default rates in its portfolio and the default rates' effect on First Marblehead Corporaton (The)'s ability to securitize additional student loan underwritings. The complaint also states that First Marblehead Corporaton (The) recklessly disregarded that its student loan guarantor, The Education Resources Institute, was under-reserved and unable to adequately insure student loans underwritten by First Marblehead Corporaton (The). The guarantor filed for bankruptcy protection on April 7, 2008.