Robbins Arroyo LLP: MoneyGram International, Inc. (MGI) Misled Shareholders According to Class Action
SAN DIEGO & DALLAS--(BUSINESS WIRE)--Nov 20, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of MoneyGram International, Inc. (NasdaqGS: MGI) have filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 11, 2014 and November 8, 2018. MoneyGram, together with its subsidiaries, provides money transfer services in the United States and internationally.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/moneygram-intl-inc/
MoneyGram Accused of Failing to Implement Adequate Anti-Fraud Programs
According to the complaint, MoneyGram boasted that the company had invested more than $120 million in its compliance and anti-fraud programs and had prevented more than $365 million in fraud losses. However, for over four years, MoneyGram was aware of high levels of fraud involving its money transfer system but failed to put adequate anti-fraud countermeasures in place because doing so would negatively impact its revenue. On November 8, 2018, the Federal Trade Commission (“FTC”) announced that MoneyGram had agreed to pay $125 million to settle allegations that (1) MoneyGram violated the FTC’s 2009 order requiring the company to implement a comprehensive anti-fraud program, and (2) that MoneyGram breached a 2012 Department of Justice Deferred Prosecution Agreement concerning the company’s anti-fraud programs. When MoneyGram reported disappointing third quarter 2018 earnings the following day, the company’s stock lost nearly half its value, closing at $2.27 per share on November 9, 2018, and has since continued to fall.
MoneyGram Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20181120005641/en/
CONTACT: Leonid Kandinov
Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
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PUB: 11/20/2018 01:19 PM/DISC: 11/20/2018 01:19 PM