NEW YORK, Jan. 30, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against The Western Union Company ("Western Union" or the "Company") (NYSE:WU) and certain of its officers. The class action, filed in United States District Court, District of Colorado, and docketed under 14-cv-00278 is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Western Union securities between February 7, 2012 and October 30, 2012 both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Western Union securities during the Class Period, you have until February 10, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
The Western Union Company provides money movement and payment services worldwide. The company operates in three segments: Consumer-to-Consumer, Consumer-to-Business, and Business Solutions.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that the Company: (i) deceived the investing public regarding Western Union's prospects and business; (ii) artificially inflated the price of Western Union common stock; (iii) caused plaintiff and other members of the Class to purchase Western Union common stock at inflated prices; and (iv) permitted defendant Scheirman to sell hundreds of thousands of dollars of his Western Union stock at artificially inflated prices.
On October 30, 2012, the Company disclosed disappointing third quarter 2012 financial results and reduced its 2012 revenue, operating margin and earnings per share outlook, blaming the Company's disastrous results and outlook in large part on the implementation of new system requirements in its Mexican operations required to comply with the Southwest Border Agreement. As a result of the new requirements, the Company was forced to terminate its relationship with 40% of its Mexican locations, as many of its agents were unable to meet the new heightened standards, and the disruption in the Company's Mexican locations further caused a disruption in Western Union's Latin American operations.
On this news, shares of Western Union fell $5.20 per share to $12.73, or more than 29.00%, on October 31, 2012.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, 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 70 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.