NEW YORK, May 30, 2008 (PRIME NEWSWIRE) -- Shares of First Marblehead Corp. (NYSE:FMD) continue to trade in the $3 to $4 dollar range this week, well off the near $40 price the company's stock commanded just seven months ago. First Marblehead share prices have been devastated in the past year following the Company's surprise revelations that it was unable to complete loan securitizations and that its loan guarantor was no longer able to guarantee First Marblehead's student loans.
On May 12, 2008, Scott+Scott filed a class action against First Marblehead and certain of its officers and directors in the U.S. District Court for the District of Massachusetts. The action is on behalf of those purchasing First Marblehead common stock during the period beginning August 10, 2006, to April 7, 2008, inclusive (the "Class Period''), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company's business and operations and that, as a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
First Marblehead stock purchasers who wish to discuss this action or have questions concerning this notice or their rights may contact Scott+Scott LLP (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537 or visit the Scott+Scott website, http://www.scott-scott.com) for more information.
Scott+Scott litigates major securities, antitrust and employee retirement plan actions throughout the United States, and represents pension funds, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primenewswire.com/ca/