A lawsuit was filed by a current investor in shares of MoneyGram International, Inc. (NASDAQ: MGI) against MoneyGram International, Inc.
San Diego, CA -- (SBWIRE) -- 04/10/2019 -- The Shareholders Foundation announces that an investor in shares of MoneyGram International, Inc. (NASDAQ: MGI) filed a lawsuit in effort to gain access to company books and records.
Investors, who purchased shares of MoneyGram International, Inc. (NASDAQ: MGI) certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff seeks to enforce the right to inspect certain corporate books and records of MoneyGram International. Among other things, the plaintiff seeks to inspect these documents to investigate mismanagement and possible breaches of fiduciary duty by the directors and officers of MoneyGram International, Inc. The plaintiff made a demand prior to the lawsuit but MoneyGram International, Inc refused the plaintiff's demand.
After receiving numerous consumer complaints alleging that customers were defrauded using MoneyGram's services, the Federal Trade Commission ("FTC") filed a complaint against the Company. Subsequently, MoneyGram International, Inc entered into a settlement with the FTC in 2009.
On October 21, 2009, the Northern District of Illinois entered a Stipulated Order for permanent injunction and final judgment (the "2009 Order") requiring that MoneyGram International, Inc, among other things, implement a comprehensive anti-fraud program reasonably designed to protect consumers by detecting and preventing fraudulently-induced money transfers worldwide and to avoid installing and doing business with MoneyGram agents worldwide who appear to be involved or complicit in processing fraudulently-induced money transfers. In tandem with the FTC investigation, the Department of Justice ("DOJ") also conducted an investigation into MoneyGram's business practices and on November 8, 2012, MoneyGram entered into a Deferred Prosecution Agreement (the "DPA") with the DOJ, whereby the Company admitted that it knowingly and intentionally aided and abetted wire fraud and willfully failed to implement an effective anti-money laundering program.
The plaintiff alleges that despite the Board's and senior management's knowledge of rampant consumer fraud taking place using MoneyGram's services, as well as the mandates of the 2009 Order and the DPA to implement controls to remediate and prevent consumer fraud, MoneyGram failed to comply with both the 2009 Order and the DPA by failing to implement adequate controls, failing to adhere to reporting requirements, and admittedly processing more than $125 million in fraudulent transfers between April 2015 and October 2016.
In November 2018, the FTC filed a motion to modify the terms of the 2009 Order and for a permanent injunction, alleging that the Company violated the 2009 Order. As a result, MoneyGram is required to pay an additional $125 million in funds as part of a revised settlement with the FTC and DOJ, which is supposed to be to be used to reimburse defrauded customers and, yet again, enhance its anti-fraud and anti-money laundering compliance programs. In addition, to date, the U.S. Attorney's Office has charged at least 37 MoneyGram agent owners for conspiracy, money laundering, and fraud related violations, with 28 of those charged having been convicted.
Investors, who purchased shares of MoneyGram International, Inc. (NASDAQ: MGI), have certain options and should contact the Shareholders Foundation
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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