Company: MoneyGram International, Inc.
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 investors who purchased shares of the Company’s common stock between February 11, 2014 and November 8, 2018, inclusive (the “Class Period”).
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 the 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.
Current MoneyGram stockholders who purchased their shares prior to November 8, 2018 are encouraged to contact Kaskela Law LLC at (888) 715 – 1740, or by completing the information form on this page, to receive additional information about this action and/or to discuss their legal rights and options.