HARTFORD, Conn., April 11, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that it has filed a lawsuit seeking class action status on behalf of all persons who purchased the common stock of MoneyGram International, Inc. ("MoneyGram" or the "Company") (NYSE:MGI) between January 24, 2007 and January 14, 2008, inclusive (the "Class Period"). The action is pending in the United States District Court for the District of Minnesota at docket number 08-cv-1026.
The Complaint alleges, inter alia, that MoneyGram and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements regarding the Company's business and financial results. It is alleged that throughout the Class Period, defendants knew but concealed the following facts from the investing public: (i) MoneyGram 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 (ii) MoneyGram concealed the extent of its potential losses arising from its exposure to asset-backed securities containing uncollectible debt.
On January 14, 2008, MoneyGram 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, a one-day decline of 50%.
Later, on March 25, 2008, MoneyGram disclosed that the SEC had launched an investigation into its financial statements, reporting and disclosures related to its investment portfolio.
If you purchased MoneyGram common stock during the Class Period, you may, no later than May 27, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
For more information about the case, its claims, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com. To view a copy of the complaint filed by Schatz Nobel Izard P.C. or for more information about class action cases and Schatz Nobel Izard, please visit our website: www.snilaw.com.