NEW YORK--(EON: Enhanced Online News)--Newman Ferrara LLP announces that a class action lawsuit has been filed in the Unites States District Court, District of Massachusetts against The First Marblehead Corp. (“FMD”) (Nasdaq:FMD) and certain of its executive officers, alleging violations of federal securities laws.
Investors who purchased FMD securities between November 4, 2012 and August 15, 2013 (the “Class Period”) may apply with the Court to be appointed Lead Plaintiff no later than October 28, 2013. The Lead Plaintiff will direct the litigation on behalf of the other class members.
On August 15, 2013, FMD issued a press release announcing that its tax liability would amount to $300 million, greatly exceeding FMD’s cash on hand. Following this announcement, FMD’s stock lost more than a third of its value, falling to $1.00 per share on August 16, 2013.
The Complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose that: (1) FMD’s tax treatment for its sale of the Trust Certificate and similarly situated securities was inappropriate; (2) such treatment exposed FMD to significant liability, threatening FMD’s future viability; (3) FMD lacked adequate internal controls over financial reporting; and (4) as a result of the foregoing, FMD’s financial statements were materially false and misleading at all relevant times.
Investors who purchased shares of FMD stock during the Class Period may contact Newman Ferrara attorney Jeffrey M. Norton (email@example.com) by email or call (212) 619-5400 to discuss this lawsuit or the Lead Plaintiff process.
Whistleblowers: Persons with knowledge that may aid in the investigation of this matter are encouraged to contact the firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers are protected from employer retaliation and may be entitled to as much as 30 percent of the recovery if the information provided leads to a successful action.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.