Kaskela Law LLC Announces Class Action Lawsuit Against MoneyGram International, Inc. and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm – MGI
RADNOR, Pa., Nov. 14, 2018 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that a class action lawsuit has been filed against MoneyGram International, Inc. (NASDAQ: MGI) (“MoneyGram” or the “Company”) on behalf of purchasers of the Company’s common stock between February 11, 2014 and November 8, 2018, inclusive (the “Class Period”).
IMPORTANT DEADLINE: Investors who purchased MoneyGram’s common stock during the Class Period may, no later than January 14, 2019, seek to be appointed as a lead plaintiff representative of the investor class. For additional information, or to learn how to participate in this action, please visit http://kaskelalaw.com/case/moneygram-international-inc/.
As detailed in the shareholder class action complaint, on November 8, 2018, the FTC issued a press release entitled “MoneyGram Agrees to Pay $125 Million to Settle Allegations that the Company Violated the FTC’s 2009 Order and Breached a 2012 DOJ Deferred Prosecution Agreement.” According to the press release, “[t]he FTC alleges that MoneyGram was aware for years of the high levels of fraud and suspicious activities involving certain agents, including large chain agents. … At the same time, MoneyGram also often failed to promptly conduct the required reviews or to suspend or terminate agents, particularly those from larger locations with high levels of fraud.”
Following this news, shares of MoneyGram’s common stock fell $2.20 per share, or nearly 50% in value, to close at $2.27 per share on November 9, 2018, on heavy trading volume.
Among other things, the class action complaint alleges that defendants made materially false and misleading statements during the Class Period, and failed to disclose to investors that: (i) MoneyGram was aware for years of high levels of fraud involving its money transfer system; (ii) MoneyGram failed to implement appropriate anti-fraud countermeasures, in part, because doing so would adversely impact its revenue; and (iii) this misconduct would draw scrutiny from the FTC, which had an agreed-upon order requiring MoneyGram to implement a comprehensive anti-fraud program. The complaint further alleges that, as a result of the foregoing, investors purchased MoneyGram’s common stock at artificially inflated prices during the Class Period and suffered investment losses as a result of defendants’ conduct.
MoneyGram investors who suffered a financial loss in excess of $100,000 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740, or via email at firstname.lastname@example.org, for additional information about this action and their legal rights and recovery options. Additional information about this action may also be found at http://kaskelalaw.com/case/moneygram-international-inc/.
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and other stockholder actions. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.