Friday, March 28, 2008
Class Action Suit Against MoneyGram International, Inc.
Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against MoneyGram International, Inc.
SAN DIEGO-- March 28, 2008 --Coughlin Stoia Geller Rudman & Robbins LLP ("Coughlin Stoia") (http://www.csgrr.com/cases/moneygram/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Minnesota on behalf of purchasers of MoneyGram International, Inc. ("MoneyGram") (NYSE:MGI) common stock during the period between January 24, 2007 and January 14, 2008 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/moneygram/. 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.
The complaint charges MoneyGram and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MoneyGram, 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 during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results related to its investments. As a result of defendants' false statements, MoneyGram stock traded at artificially inflated prices during the Class Period, trading in the $28-$30 per share range during most of the Class Period.
On January 14, 2008, the Company 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, the Company announced it had needed to obtain amendments and waivers under its credit agreements. On this news, MoneyGram'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, the Company 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 during the Class Period, were as follows: (a) the Company lacked requisite internal controls to ensure that the reserves for the Company's investments in asset-backed securities were adequate, and, as a result, the Company's projections and reported results issued during the Class Period were based upon defective assumptions and/or manipulated facts; and (b) the Company concealed the extent of its potential losses arising from its exposure to asset-backed securities containing uncollectible debt.
Plaintiff seeks to recover damages on behalf of all purchasers of MoneyGram common stock during the Class Period (the "Class"). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.
Contacts
Coughlin Stoia Geller Rudman & Robbins LLP
Darren Robbins, 800-449-4900 or 619-231-1058
djr@csgrr.com
If you need to reach many clients quickly with important news, try fax broadcasting. And being married isn't always what you think it is. If you live in Arizona and want to live free again, consider an Arizona Divorce as one option.
