October 10, 2012 (Update) -- $10 million settlement approved by a Delaware Chancery Court Judge to settle shareholder lawsuit over a company recapitalization plan.
April 22, 2011 -- An investor in shares of MoneyGram International, Inc. (NYSE:MGI) filed a lawsuit State Court against certain directors of MoneyGram Intl and certain controlling stockholders in connection with a purported recapitalization.

According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties in connection purported recapitalization, whereby certain controlling stockholders of MoneyGram International will convert their preferred stock and receive $218.3 million in cash and $109.2 million in additional stock in excess of their contractual conversion preferences. The plaintiff clams that the purported recapitalization will enable certain controlling stockholders to cash out approximately 28.7% of their $760 million cash investment in MoneyGram Intl’s preferred stock, while actually increasing their percentage ownership of MoneyGram International’s fully diluted equity.
However, so the plaintiff, the common stockholders will suffer substantial cash value dilution and voting power dilution through their reduced continuing interest in a much more highly leveraged company.

The plaintiff claims the terms of purported recapitalization are grossly unfair and result from an unfair process dominated by the controlling stockholders and management.
Shares of MoneyGram International, Inc. (Public, NYSE:MGI) traded during 2007 as high as over $30 and but fell during 2008 to $1.39 per share. However MGI shares were able to gain value and traded during 2010 at $3.74 per share.

MoneyGram International reported over the past four years 12months Total Revenue ranging from $1.166billion to $1.349billion. MoneyGram International, Inc. was able to pull out of a substantial Net Loss of $1.071billion in 2007 and report in 2010 a Net Income of $43.80million.