BALTIMORE, Md., May 31, 2008 (PRIME NEWSWIRE) -- Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for District of Massachusetts on behalf of purchasers of the common stock of The First Marblehead Corporation ("First Marblehead" or the "Company") (NYSE:FMD) between August 10, 2006 and April 7, 2008, inclusive (the "Class Period"). No class has yet been certified in this action.
Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than June 9, 2008 and be selected by the Court. The lead plaintiff will direct the litigation and participate in all important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. If you have a net loss in excess of $100,000 incurred from transactions in First Marblehead securities during the Class Period and are interested in directing the course of this litigation for plaintiffs, please contact Brower Piven (hoffman@browerpiven.com or 410/332-0030) to answer any questions you may have in that regard.
The complaint alleges that, during the Class Period, the Company, and certain of its officers and/or directors, violated federal securities laws by withholding material facts from the investing public, including: that the Company lacked adequate internal and financial controls to anticipate and address its increasing default rates which affected performance because loan guarantor arrangements failed to cover sufficient defaulted loans. The complaint alleges that as a result of the foregoing and other factors, Company statements about its financial well-being and future business prospects were lacking in any reasonable basis when made. Thereafter, the price of First Marblehead shares declined.
If you have suffered a net loss for all transactions in First Marblehead securities during the Class Period (including shares or possibly calls purchased during, but retained after, the Class Period or possibly put options sold but not covered until after the Class Period), you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-332-0030, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primenewswire.com/ca/