Shareholder Class Action Filed Against MoneyGram International, Inc. by the Law Firm of Schiffrin Barroway Topaz & Kessler, LLP
RADNOR, Pa., April 10 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Minnesota, on behalf of all purchasers of securities of MoneyGram International, Inc. (NYSE:MGI) ("MoneyGram" or the "Company") between January 24, 2007 and January 14, 2008, inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbtklaw.com.
The Complaint charges MoneyGram and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MoneyGram is a global payment services company. The Company's major products and services include global money transfers, money orders and payment processing solutions for financial institutions and retail customers. The Complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's financial well-being, business relationships, and prospects. Specifically, defendants failed to disclose or indicate the following: (1) that the Company had inadequate reserves for its investments in asset-backed securities; (2) that the Company had understated its potential loses from its exposure to asset-backed securities; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made. On January 14, 2008, the Company shocked investors when it announced that it was realigning its portfolio due to heavy investment in asset-backed securities, and that in January 2008 it sold $1.3 billion of securities for a realized loss of $200 million. The Company also announced that it was involved in negotiations concerning recapitalization of the Company, which would "provide sufficient capital to support realignment of the Company's portfolio away from the risk associated" with asset-backed securities. This process would involve the liquidation of a significant portion of the Company's investment portfolio, and would cause the Company to experience losses that were substantially higher than those reflected in the November 30, 2007 valuation. The Company announced that as of November 30, 2007, it had experienced total net unrealized losses of $860 million. Finally, the Company announced that investors should not rely on the previously given guidance for 2007 results. Upon the release of this news, the Company's shares declined $6.02 per share, or 49.47 percent, to close on January 15, 2008 at $6.15 per share, on unusually heavy trading volume. On February 12, 2008, the Company announced that it gave final approval to a bailout of cash and debt from the investors, and that through February 11, 2008, the Company sold approximately $1.8 billion of investment portfolio securities for a net realized loss of approximately $380 million. Then, on February 29, 2008, the Company announced that it was delaying filing of its 2007 Annual Report, and that it expected $1.2 billion in impairments in the fourth quarter. On this news, shares of the Company's shares declined further, closing on March 3, 2008 at $3.26 per share, on unusually heavy trading volume. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/ If you are a member of the class described above, you may, not later than May 27, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. CONTACT: Schiffrin Barroway Topaz & Kessler, LLP First Call Analyst:
CONTACT: Darren J. Check, Esq., or Richard A. Maniskas, Esq., both of Web site: http://www.sbtklaw.com/
2008-04-10 18:03:02 0333543 PRNEWSWIRE
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