Lawsuit on Behalf of Investors in The First Marblehead Corporation (FMD) Announced by Shareholders Foundation

SF logo

SAN DIEGO, Sept. 17, 2013 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed on behalf of certain purchasers of The First Marblehead Corporation (FMD) common stock over alleged violations of Federal Securities Laws by The First Marblehead Corporation in connection with certain allegedly false and misleading statements made between November 4, 2010 and August 15, 2013.

Investors who purchased a significant amount of shares of The First Marblehead Corporation (FMD) between November 4, 2010 and August 15, 2013, and / or those who purchased FMD shares prior to November 2010 and currently hold any of those shares have certain options and should contact the Shareholders Foundation at mail(at) or call +1(858) 779 - 1554.

The plaintiff alleges that the First Marblehead Corporation and certain of its officers and directors violated the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

More specifically, the plaintiff alleges that the Defendants made false and/or misleading statements and/or failed to disclose that the First Marblehead Corporation's tax treatment for its sale of the Trust Certificate and similarly situated securities was inappropriate, that such treatment exposed the Company to significant liability, threatening the future viability of the Company, that The First Marblehead Corporation lacked adequate internal controls over financial reporting, and that as a result of the foregoing, The First Marblehead Corporation's financial statements were materially false and misleading at all relevant times.

Then on August 15, 2013, The First Marblehead Corporation reported its fourth quarter and full year financial results. Among other things, The First Marblehead Corporation also provided an update on the IRS audit in connection with the sale of the trust certificate of the NC Residual Owners Trust. The First Marblehead Corporation said that the disallowance of the loss, coupled with the additional taxable income after the sale date, creates a proposed adjustment which the First Marblehead Corporation estimates to be approximately $300 million plus interest.

Shares of The First Marblehead Corporation declined from over $1.80 per share in late July 2013 to $0.79 in late August.

The plaintiff seeks to recover damages.

Those who purchased shares of The First Marblehead Corporation (FMD) have certain options and should contact the Shareholders Foundation, Inc. by e-mail at or call +1 (858) 779-1554.

The Shareholders Foundation, Inc. is a professional portfolio legal 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. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

CONTACT: Shareholders Foundation, Inc. Trevor Allen +1 (858) 779-1554 3111 Camino Del Rio North Suite 423 San Diego, CA 92108

Source:Shareholders Foundation, Inc.