NEW YORK--(BUSINESS WIRE)--The law firm of Wohl & Fruchter LLP is investigating possible violations of federal securities laws by officers and directors of The First Marblehead Corporation (First Marblehead) (NYSE: FMD).
On August 15, 2013, after the market close, First Marblehead issued a press release announcing its financial and operating results for the fourth quarter and full fiscal year ended June 30, 2013.
In the release, the Company disclosed that, in connection with an ongoing IRS audit of its federal income tax returns, the Company expects to receive a Notice of Proposed Adjustment (“NOPA”) pursuant to which the IRS would seek to disallow losses that generated tax refunds previously received by the Company, as well as require the Company to include in its tax returns any taxable income from the sale of a certain trust certificate.
The Company estimated that the disallowance of the loss, coupled with the additional taxable income, would create a proposed adjustment equal to approximately $300 million plus interest.
Upon the news, FMD shares declined over 36%, to close at $1.00/share on August 16, 2013.
Wohl & Fruchter’s investigation concerns whether First Marblehead management improperly concealed from investors, among other things, the potential magnitude of the proposed adjustment that might result from the IRS audit.
Persons with relevant information, and FMD shareholders with questions about this investigation, are invited to contact the attorney below, or our Firm by calling 866.833.6245.
Additional information is available on our website at: http://www.wohlfruchter.com/cases/fmd.
About Wohl & Fruchter
Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
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