Case Page

 

Case Status:    DISMISSED    
On or around 01/02/2015 (Court's order of dismissal)

Filing Date: August 28, 2013

According to the complaint, this is a class action on behalf of purchasers of First Marblehead securities between November 4, 2010 through August 15, 2013, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).

First Marblehead is a specialty finance company focused on education loanprograms for K-12, undergraduate and graduate students in the United States, as well as tuition planning, tuition billing, refund management and payment technology services. The Company partners with lenders to design and administer education loan programs, which are typically school-certified and designed to be marketed through educational institutions or to prospective student borrowers and their families directly, and to generate portfolios intended to be held by the originating lender or financed in the capital markets. First Marblehead also offers a number of ancillary services in support of its clients, including loan origination, retail banking, portfolio management and securitization services.

On March 31, 2009, the Company completed the sale of the trust certificate of NC Residuals Owners Trust (the “Trust Certificate”). The sale generated a cash refund of income taxes previously paid of $189.3 million.

Throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and financial performance. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s tax treatment for its sale of the Trust Certificate and similarly situated securities was inappropriate; (2) such treatment exposed the Company to significant liability, threatening the viability of the Company; (3) the Company lacked adequate internal controls over financial reporting; and (4) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.

As a result of Defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's securities, Plaintiff and other Class members have suffered significant losses and damages.

On December 18, 2013, the Court issued an Order appointing lead plaintiff and approving lead counsel. Lead Plaintiff filed an amended complaint on February 20, 2014.

On October 18, 2014, the Court issued an Order allowing Defendant's Motion to Dismiss.

COMPANY INFORMATION:

Sector:
Industry:
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: FMD
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


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In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Massachusetts
DOCKET #: 13-CV-12121
JUDGE: Hon.Patti B. Saris
DATE FILED: 08/28/2013
CLASS PERIOD START: 11/04/2010
CLASS PERIOD END: 08/15/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Pomerantz Haudek Block Grossman & Gross LLP (former Chicago)
    1 North LaSalle Street, Suite 2225, Pomerantz Haudek Block Grossman & Gross LLP (former Chicago), IL 60602
    312.377.1181 312.377.1184 · info@pomerantzlaw.com/
  2. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  3. Shapiro Haber & Urmy LLP (Boston)
    53 State Street, Shapiro Haber & Urmy LLP (Boston), MA 02109
    617.439.3939 617.439.0134 · info@shulaw.com
  4. Wohl & Fruchter LLP
    570 Lexington Avenue, 16th Floor, Wohl & Fruchter LLP, NY 10022
    212.758.4000 212.758.4000 ·
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 13-CV-12121
JUDGE: Hon.Patti B. Saris
DATE FILED: 02/20/2014
CLASS PERIOD START: 04/06/2009
CLASS PERIOD END: 08/15/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Berman DeValerio (Boston)
    One Liberty Square, Berman DeValerio (Boston), MA 02109
    617.542.8300 617.542.8300 ·
  3. Klafter Olsen & Lesser LLP (Washington D.C.)
    1250 Connecticut Ave., N.W., Suite 200, Klafter Olsen & Lesser LLP (Washington D.C.), DC 20036
    202.261.3553 202.261.3553 ·
No Document Title Filing Date