BERKELEY, Calif.--(BUSINESS WIRE)--Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, today advised investors of the Oct. 28, 2013, deadline to move to be a lead plaintiff in a securities class-action lawsuit filed against First Marblehead Corp. (NYSE:FMD) (“FMD”), following the company’s disclosure of tax liability exceeding its cash on hand. Investors are invited to inquire about their options with Hagens Berman attorneys by emailing FMD@hbsslaw.com.
“Instead, the company not only failed to inform investors, but failed to keep a reserve of cash on hand to cover the liability, a reckless decision, we believe, resulting in substantial shareholder losses.”
If you purchased FMD common stock between Nov. 4, 2010, and Aug. 15, 2013, (the “Class Period”) and suffered significant financial losses, you may also contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000. You can submit information online at http://hb-securities.com/investigations/FMD.
On Aug. 15, 2013, FMD announced its year-end quarterly results, including tax liabilities exceeding its cash on hand, approximately $300 million. Following the announcement, the company’s stock lost more than a third of its value, closing at $1.00 on Aug. 16, 2013.
Hagens Berman’s investigation centers on the Aug. 15, 2013, announcement, and what FMD and its officers knew in advance of the announcement. In particular, the firm is investigating whether FMD failed to disclose potential liability resulting from an IRS audit into sales of a trust certificate.
“We believe that First Marblehead and its officers had sufficient reason to treat the IRS audit seriously and inform their investors of the threat,” said Mr. Kathrein. “Instead, the company not only failed to inform investors, but failed to keep a reserve of cash on hand to cover the liability, a reckless decision, we believe, resulting in substantial shareholder losses.”
Persons with non-public information may also want to consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
Hagens Berman Sobol Shapiro, LLP is an investor-rights class-action law firm with offices in nine cities including the San Francisco Bay Area where this lawsuit has been filed. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The Firm’s Securities Newsletter is at http://www.hb-securities.com/newsletter.