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If you purchased shares of MoneyGram International Inc (NYSE: MGI), you might have certain options and should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
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June 18, 2010 – The court approved the settlement, the plan of allocation, the award for attorneys’ fees and expenses, and dismissed the action with prejudice.
March 10, 2010 - The court preliminarily approved the settlement.
March 9, 2010 - Parties filed a stipulation of settlement.
May 20, 2009 - The court granted in part and denied in part defendants' motion to dismiss.
December 3, 2008 - Defendants filed a motion to dismiss.
October 3 , 2008 - The lead plaintiff filed an amended consolidated complaint.
July 22, 2008 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.
May 27, 2008 - Lead plaintiff motions were filed.
April 10, 2008 - Another investor filed a complaint.
April 4, 2008 - Another investor filed a complaint.
March 28, 2008 - An investor in shares of MoneyGram International Inc (NYSE: MGI) filed a lawsuit in the U.S. District Court for the District of Minnesota over alleged violations of Federal Securities Laws by MoneyGram International Inc in connection with certain allegedly false and misleading statements made between January 24, 2007 and January 14, 2008.
The complaint charges MoneyGram International Inc and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MoneyGram International Inc, through its subsidiaries, provides payment services in the United States, as well as through a network of retail agents in North America, Latin America, western Europe, eastern Europe, Africa, India, Asia Pacific, and the Middle East.
The complaint alleges that between January 24, 2007 and January 14, 2008, defendants issued materially false and misleading statements regarding MoneyGram International Inc’s business and financial results related to its investments. As a result of defendants’ false statements, MoneyGram International Inc stock traded at artificially inflated prices between January 24, 2007 and January 14, 2008, trading in the 30 per share range during most of the time frame between January 24, 2007 and January 14, 2008.
On January 14, 2008, MoneyGram International Inc announced that it had completed a valuation of its investment portfolio and had experienced additional net unrealized losses of $571 million as of September 30, 2007, bringing its cumulative net unrealized losses to $860 million. In addition, MoneyGram International Inc announced it had needed to obtain amendments and waivers under its credit agreements. On this news, MoneyGram International Inc’s stock declined to as low as $5.66 per share before closing at $6.15 per share on January 15, 2008, on volume of 19 million shares, a one-day decline of 50%.
Later, on March 25, 2008, MoneyGram International Inc publicly disclosed that the SEC had launched an investigation into its financial statements, reporting and disclosures related to its investment portfolio.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public between January 24, 2007 and January 14, 2008, were as follows: (a) MoneyGram International Inc lacked requisite internal controls to ensure that the reserves for MoneyGram International Inc’s investments in asset-backed securities were adequate, and, as a result, MoneyGram International Inc’s projections and reported results issued between January 24, 2007 and January 14, 2008 were based upon defective assumptions and/or manipulated facts; and (b) MoneyGram International Inc concealed the extent of its potential losses arising from its exposure to asset-backed securities containing uncollectible debt.