MoneyGram International, Inc. (NASDAQ: MGI) Investor Securities Class Action Lawsuit 11/14/2018

If you purchased a significant amount of shares of MoneyGram International, Inc. (NASDAQ: MGI) between February 11, 2014 through November 8, 2018, and / or if you purchased any NASDAQ: MGI shares prior to February 2014 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: January 14, 2019. NASDAQ: MGI investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
MoneyGram International
Case Name: 
MoneyGram International Shareholder Class Action Lawsuit 11/14/2018
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: MGI
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/14/2018
Class Period Begin: 
02/11/2014
Class Period End: 
11/08/2018
Court of Filing: 
U.S. District Court for the Northern District of Illinois
Deadline To File for Lead: 
01/14/2019
Summary: 

An investor in shares of MoneyGram International, Inc. (NASDAQ: MGI) filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged violations of Federal Securities Laws by MoneyGram International, Inc. in connection with certain allegedly false and misleading statements made between February 11, 2014 through November 8, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of MoneyGram International, Inc. (NASDAQ: MGI) common shares between February 11, 2014 through November 8, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between February 11, 2014 through November 8, 2018, the defendants made false and/or misleading statements and/or failed to disclose that MoneyGram was aware for years of high levels of fraud involving its money transfer system, that MoneyGram failed to implement appropriate anti-fraud countermeasures, in part, because doing so would adversely impact its revenue, that this misconduct would draw scrutiny from the FTC, which had an agreed-upon order requiring MoneyGram to implement a comprehensive anti-fraud program, that this misconduct would draw scrutiny from the Department of Justice, which entered into a Deferred Prosecution Agreement concerning MoneyGram’s anti-fraud and anti-money laundering programs, and that as a result, defendants’ statements about MoneyGram’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Dallas, TX based MoneyGram International, Inc., together with its subsidiaries, provides money transfer services in the United States and internationally. MoneyGram International, Inc. reported that its annual Total Revenue declined from over $1.63 billion in 2016 to over $1.6 billion in 2017 and that its Net Income of $15.9 million in 2016 turned into a Net Loss of $29.8 million in 2017.

On November 8, 2018, the Federal Trade Commission ("FTC") announced that M MoneyGram International, Inc. "has agreed to pay $125 million to settle allegations that the company failed to take steps required under a 2009 Federal Trade Commission order to crack down on fraudulent money transfers that cost U.S. consumers millions of dollars." The settlement also "resolves allegations that MoneyGram also violated a separate 2012 deferred prosecution agreement with the Department of Justice." "The FTC alleges that MoneyGram International, Inc. was aware for years of the high levels of fraud and suspicious activities involving certain agents, including large chain agents."

Shares of MoneyGram International, Inc. (NASDAQ: MGI) declined from $17.86 per share in April 2017 to as low as $2.04 per share on November 14, 2018.