ENGLEWOOD CLIFFS, N.J., Sept. 10, 2013 (GLOBE NEWSWIRE) -- Gardy & Notis, LLP, a national law firm advocating for shareholder rights, announces that a lawsuit has been filed in the United States District Court for the District of Massachusetts alleging violations of federal securities laws by officers and directors of The First Marblehead Corporation ("First Marblehead" or the "Company") (NYSE:FMD).
Any First Marblehead investor wishing to serve as lead plaintiff in the above lawsuit must apply to the Court no later than October 28, 2013. If you are a First Marblehead shareholder and wish to discuss this lawsuit or have any questions concerning your rights and interests, you may contact our Firm by calling 201-567-7377, or contacting the attorneys named below.
The complaint alleges that between November 4, 2010 and August 15, 2013 (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 financial performance. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company's tax treatment for its sale of the Trust Certificate and similarly situated securities was inappropriate; (2) such treatment exposed the Company to significant liability, threatening the future viability of the Company; (3) the Company lacked adequate internal controls over financial reporting; and (4) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On August 15, 2013, First Marblehead disclosed that the tax liability related to its IRS audit would amount to $300 million, more than the Company's reported cash on hand, and nearly double its market capitalization. On this news, the Company's shares declined $0.57 per share or over 36%, to close at $1.00 per share on August 16, 2013.
If you invested in First Marblehead's stock or options and would like to discuss your legal rights, call Mark Gardy or Charles Germershausen at 201-567-7377 or e-mail mgardy@gardylaw.com or cgermershausen@gardylaw.com. Gardy & Notis, LLP also encourages anyone with information regarding First Marblehead's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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