October 28, 2014 - The court granted the defendants' motion to dismiss.
April 7, 2014 - The defendants filed a motion to dismiss.

February 20, 2014 - The plaintiffs filed an amended complaint on behalf of investors who purchased FMD common shares between April 6, 2009 and August 15, 2013. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between April 6, 2009 and August 15, 2013.

October 28, 2013 - Lead plaintiff motions were filed.

August 28, 2013 - An investor in shares of First Marblehead Corporation (The) (NYSE: FMD) filed a lawsuit in the U.S. District Court for the District of Massachusetts against First Marblehead Corporation over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between November 4, 2010 and August 15, 2013.

According to the complaint the plaintiff alleges, on behalf of all persons or entities who purchased or otherwise acquired securities of First Marblehead Corporation (The) (NYSE: FMD) between November 4, 2010 and August 15, 2013, that First Marblehead Corporation (The) and certain of its officers and directors violated the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

More specifically, the plaintiff alleges that the Defendants made false and/or misleading statements and/or failed to disclose that First Marblehead Corporation’s tax treatment for its sale of the Trust Certificate and similarly situated securities was inappropriate, that such treatment exposed the Company to significant liability, threatening the future viability of the Company, that First Marblehead Corporation (The) lacked adequate internal controls over financial reporting, and that as a result of the foregoing, First Marblehead Corporation’s financial statements were materially false and misleading at all relevant times.

Shares of First Marblehead Corporation (The) (NYSE: FMD) rose from $0.659 per share in late 2012 to as high as $1.88 per share in late July 2013.

Then on August 15, 2013, First Marblehead Corporation (The) reported its fourth quarter and full year financial results. First Marblehead Corporation’s Total Revenue rose from $40.71 million for the 12 months period that ended on June 30, 2012 to $46.02 million for the 12 months period that ended on June 30, 2013, while its Net Income of $1.1 billion for the 12 months period that ended on June 30, 2012 turned into a Net Loss of $50.20 million for the 12 months period that ended on June 30, 2013.

Among other things, First Marblehead Corporation (The) also provided an update on the IRS audit. First Marblehead Corporation (The) said that its federal income tax returns have been under audit by the Internal Revenue Service (the IRS ) in connection with the sale of the trust certificate of the NC Residual Owners Trust ( Trust Residuals ). First Marblehead Corporation (The) said that as part of that audit process, it expects to receive a Notice of Proposed Adjustment ( NOPA ). First Marblehead Corporation (The) said that while the NOPA, when issued, is an initial IRS position and not a final determination, and as a result, does not require any tax payment at this time, it expects that the NOPA would seek to disallow the loss that generated the tax refunds previously received by First Marblehead Corporation (The) as well as require First Marblehead Corporation (The) to include in its tax returns any taxable income of the Trust Residuals from the March 31, 2009 sale date through June 30, 2011. First Marblehead Corporation (The) said that the disallowance of the loss, coupled with the additional taxable income after the sale date, creates a proposed adjustment which First Marblehead Corporation (The) estimates to be approximately $300 million plus interest.

Shares of First Marblehead Corporation (The) (NYSE: FMD) declined from over $1.80 per share in late July 2013 to $0.913 per share on August 19, 2013.

On August 28, 2013, NYSE: FMD shares closed at $0.831 per share.