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MoneyGram International, Inc.
Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, is investigating potential claims against certain officers and directors of MoneyGram International, Inc. (NASDAQ: MGI).
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MONEYGRAM (MGI) INVESTORS ALERT: BERNSTEIN LIEBHARD LLP ANNOUNCES INVESTIGATION OF MONEYGRAM INTERNATIONAL, INC. – MGI
February 19, 2019.
New York, New York—Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, is investigating potential claims against certain officers and directors of MoneyGram International, Inc. (“MoneyGram” or the “Company”) (NASDAQ: MGI).
In 2009 and 2012, respectively, the Federal Trade Commission (“FTC”) and the Department of Justice (“DOJ”) alleged that MoneyGram knew that its money transfer system was being used to defraud people but did very little about it. In a 2009 agreement with the FTC, MoneyGram agreed to implement a program to protect consumers from fraud. Likewise, in a 2012 agreement with the DOJ, MoneyGram agreed to forfeit $100 million and adhere to extensive compliance obligations and structural changes to prevent a repeat of the charged conduct.
On November 8, 2018, the FTC and the DOJ alleged that MoneyGram failed to implement the comprehensive fraud prevention program mandated by the agreements with these government entities. Specifically, these entities alleged that MoneyGram: (1) was aware for years of the high levels of fraud and suspicious activities involving certain agents; (2) allowed its computerized monitoring system to malfunction in 2015 and 2016 even though the system was aimed at blocking known fraudsters from using its service; (3) failed to properly vet its agents and provide appropriate training on how to detect and prevent consumer fraud, including at locations with high fraud rates; and (4) failed to share complaints concerning fraud-induced money transfers with the FTC and the DOJ.
MoneyGram settled these allegations with the FTC and the DOJ for $125,000,000.
Upon these revelations, MoneyGram stock fell $2.20 per share, or over 49%, from its previous closing price to close at $2.27 per share on November 9, 2018, damaging investors.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.