NEW YORK, Jan. 05, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of MoneyGram International, Inc. (“MoneyGram” or the “Company”) (NASDAQ: MGI). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.
The investigation concerns whether MoneyGram and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On November 8, 2018, shortly before market close, the Federal Trade Commission (“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”. The press release stated that the FTC had filed a complaint against MoneyGram alleging, in part, that MoneyGram: (i) “failed to implement the comprehensive fraud prevention program mandated by” a 2009 FTC order; (ii) “was aware for years of the high levels of fraud and suspicious activities involving certain agents”; (iii) allowed its computerized monitoring system to malfunction even though the system was aimed at blocking known fraudsters from using its service; (iv) failed to properly vet its agents and provide appropriate training on how to detect and prevent consumer fraud, including at locations with high fraud rates; and (v) failed to share complaints concerning fraud-induced money transfers with the FTC. Then, on November 9, 2018, MoneyGram announced its earnings for the third quarter of 2018, reporting that “[m]oney transfer revenue” decreased “15% on a reported basis . . . as compared to third quarter 2017”, citing “the impact of higher compliance standards and newly implemented corridor specific controls.” On this news, MoneyGram’s stock price fell $2.20 per share, or roughly 49.2%, to close at $2.27 per share on November 9, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com 888-476-6529 ext. 9980
