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Welcome to the MoneyGram International, Inc.
Securities Litigation Website.
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IMPORTANT DATES & DEADLINES
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File a Proof of Claim:
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Postmarked not later than July 22, 2010
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Request an Exclusion:
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Postmarked no later than June 4, 2010
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File an Objection:
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Received no later than June 4, 2010
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Settlement
Fairness Hearing:
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Approved on June 18, 2010 in the United States
District Court for the District of Minnesota
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The following is a summary of information presented in more detail in the Notice
of Class Action, Proposed Settlement, Motion for Attorneys’ Fees and Fairness Hearing
(the "Notice"), which Class Members should have received in the mail, and which
you can access by clicking the box to the left. Since this is just a summary, you
should read the full Notice for additional details.
Please read this information carefully. If you are a Class Member (as defined below),
your rights will be affected by these proceedings and you may be entitled to receive
benefits under a proposed settlement of $80,000,000.
If you purchased or otherwise acquired the common stock of MoneyGram International,
Inc. (“MoneyGram”) between January 24, 2007 and March 25, 2008, inclusive (the “Class
Period”), you may be a member of the Class (“Class Member”) and could get a payment
from the Settlement described below.
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Securities Brokers and other Nominees: Please see instructions on page 9 of the
Notice.
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FAIRNESS HEARING
The Fairness Hearing will be held on June 18, 2010, at 10:00 a.m., before
The Honorable David S. Doty, United States District Judge, at the United States
District Court for the District of Minnesota, 300 South Fourth Street, Minneapolis,
MN 55415 (the “Fairness Hearing”), to determine whether:
- (a) the proposed settlement should be approved by the Court as fair, reasonable
and adequate;
- (b) Lead Counsel’s application for an award of attorneys’ fees and reimbursements
of expenses should be approved;
- (c) the claims against Defendants should be dismissed with prejudice; and
- (d) such other matters as the Court deems appropriate to rule upon.
The Court may adjourn or continue the Fairness Hearing without further notice to
the Class. The issuance of the Notice is not an expression of the Court’s opinion
on the merits of any claim in the lawsuit, and the Court still has to decide whether
to approve the Settlement. If the Court approves the Settlement, payments will be
made after appeals, if any, are resolved and after the processing of all claims.
Please be patient.
WHAT IS THIS CASE ABOUT?
MoneyGram is a payment services company that offers its products and services to
consumers and businesses primarily through its network of agents and financial institution
customers. Beginning on or about March 28, 2008, four purported class action complaints
were filed against MoneyGram and the Individual Defendants, alleging violations
of the federal securities laws. These actions were consolidated before the United
States District Court for the District of Minnesota.
On July 22, 2008, the Court entered an Order appointing Oklahoma Teachers’ Retirement
System (“OTRS”) as Lead Plaintiff and the firm of Nix, Patterson & Roach, LLP as
Lead Counsel and on October 3, 2008, OTRS filed its Consolidated Class Action Complaint
for Violations of the Federal Securities Laws. Defendants filed a Motion to Dismiss
on December 3, 2008 and a Memorandum in Support on January 13, 2009. Lead Plaintiff
filed a Response on February 9, 2009 and Defendants filed a Reply on February 17,
2009. On May 20, 2009, The Honorable David S. Doty issued an order denying Defendants’
Motion to Dismiss as to all Defendants except Putney.
On August 21, 2009, OTRS moved for class certification pursuant to Federal Rules
of Procedure 23(a)(1-4) and (b)(3). In Fall 2009, the Parties agreed to mediate
the possible resolution of the Action and selected retired Judge Daniel Weinstein
as mediator. On January 29, 2010, Judge Weinstein met with Lead Plaintiff represented
by Lead Counsel and Counsel, Defendants represented by Defense Counsel and each
of the Defendants’ D&O insurance carriers, and again on February 3, 2010, but no
agreement was reached.
Although numerous attempts to find common ground failed, the parties came to an
agreement and on February 24, 2010, the Parties entered into a Memorandum of Understanding
by which the Parties agreed to settle this litigation. On March 10, 2010, the Court
preliminarily approved the Settlement.
For more details please see the Notice (link at upper left side of page).
TERMS OF THE SETTLEMENT
In exchange for the payment by, or on behalf of, the Settling Defendants of $80
Million in cash, the Class shall release any and all claims it has against the Released
Persons (as defined in the Notice, Answer to Question 2).
Lead Plaintiff and the Released Persons have agreed to resolve the lawsuit. In reaching
the Settlement, they have avoided the risk, cost and time of a trial and Lead Plaintiff
has avoided any further delay in bringing this Action to a resolution. In addition,
as with any litigated case, Lead Plaintiff would face an uncertain outcome if this
Action were to go to trial. On one hand, a trial could result in a verdict greater
than the Settlement and on the other hand, the Released Persons have many defenses
that they can be expected to assert, and a trial could result in a verdict lower
than the Lead Plaintiff has obtained, or even no recovery at all for the Lead Plaintiff
and the Class. Based on these factors and others, Lead Plaintiff and Lead Counsel
believe the Settlement is best for all Class Members.
The Released Persons do not believe they violated the federal securities laws, deny
all allegations of wrongdoing asserted against them, and deny that any of MoneyGram’s
public statements were materially false or misleading. They have also asserted affirmative
defenses to the claims alleged in this case. The Released Persons entered into the
Settlement without in any way acknowledging any wrongdoing of any kind.
For more details, including the Plan of Allocation, please see the Notice (link
at upper left side of page).
THE RIGHTS OF THE CLASS MEMBERS
If you are a Class Member, you have the following options:
- FILE A PROOF OF CLAIM – To participate in the distribution of the
Settlement Fund, you must timely complete and return the Proof of Claim and Release
form. To receive a portion of the Net Settlement Fund, Class Members must complete
a Proof of Claim and Release and mail it and all required documentation to the Claims
Administrator postmarked not later than July 22, 2010 to the address set
forth in Question 7 of the Notice. Class Members who do not submit acceptable Proofs
of Claim and Releases will not share in the Settlement proceeds. Class Members who
do not submit either a request for exclusion or an acceptable Proof of Claim and
Release will nevertheless be bound by the Settlement and the Final Judgment and
Order (“Final Judgment”), dismissing the claims against the Defendants. You can
find links to the Notice and Proof of Claim Form on the upper left side of this
page.
- EXCLUDE YOURSELF FROM THE CLASS – You get no payment. You may request
to be excluded from the Class. To do so, you must mail a written request to
the Claims Administrator at: In Re MoneyGram International, Inc. Securities Litigation
Settlement, c/o Rust Consulting, Inc., Claims Administrator, P.O. Box 2304, Faribault,
MN 55021-9004. The request for exclusion must include: (a) your name, address, and
telephone number; (b) the amount of MoneyGram common stock purchased, otherwise
acquired, or sold during the Class Period, the prices paid or received, the date
of each transaction and the amount or number of MoneyGram Securities held as of
the beginning of the class Period on January 24, 2007; and (c) a statement that
you wish to be excluded from the Settlement Class. TO BE VALID, A REQUEST FOR EXCLUSION
MUST STATE ALL OF THE FOREGOING INFORMATION. YOUR EXCLUSION REQUEST MUST BE POSTMARKED
NO LATER THAN JUNE 4, 2010.
If you submit a valid and timely request for exclusion, you will have no rights
under the Settlement, will not participate in any distribution of the Net Settlement
Fund, and will not be legally bound by anything that happens in this lawsuit.
If you do exclude yourself from the Class, you may be able to sue, continue to sue,
or be part of a different lawsuit or arbitration against the Released Persons. You
should consult your own legal counsel concerning this issue.
- OBJECT – Any Class Member who has not validly and timely requested
to be excluded from the Class, and who objects to any aspect of the Settlement,
the Plan of Allocation, the request for attorneys’ fees and reimbursement of expenses,
and the request for reimbursement of the reasonable costs and expenses of Lead Plaintiffs
may appear and be heard at the Fairness Hearing. Any such Class Member must submit
a letter or other filing saying that you object to the proposed Settlement in In
re MoneyGram International, Inc. Securities Litigation, Consolidated Case
No. 08-883-DSD, which must be received no later than June 4, 2010, to each
of the following: (i) Clerk of the U.S. District Court for the District of Minnesota,
United States Courthouse, 300 South Fourth Street, Minneapolis, MN 55415; (ii) Bradley
E. Beckworth, Esq., Jeffrey J. Angelovich, Esq., Nix , Patterson & Roach, LLP, 205
Linda Drive, Daingerfield, TX 75638 (Lead Counsel); and (iii) Joseph S. Allerhand,
Esq., Weill, Gotshal & Manges LLP, 767 Fifth Avenue, New York, NY 10153 and Michael
Beck, Esq., Oppenheimer Wolff & Donnelly LLP, Plaza VII Building, Suite 3300, 45
South Seventh Street, Minneapolis, MN 55402-1609 (Defendants’ Counsel).
The letter or other filing must include your name, address, telephone number, signature
and the reasons you object. You must also include ) the amount of MoneyGram common
stock purchased, otherwise acquired, or sold during the Class Period, the prices
paid or received, the date of each transaction and the amount or number of MoneyGram
Securities held as of the beginning of the class Period on January 24, 2007.
The Fairness Hearing may be delayed from time to time by the Court without further
written notice to the Class. If you intend to attend the Fairness Hearing, you should
confirm the date and time with Lead Counsel.
Class Members do not need to appear at the hearing or take any other action to indicate
their approval.
FURTHER INFORMATION
If you need additional copies of the Notice, or if you have a question about filing
a claim, you may contact the Claims Administrator at: In re MoneyGram International,
Inc. Securities Litigation Settlement, c/o Rust Consulting, Inc., P.O. Box 2304,
Faribault, MN 55021-9004, Toll-free Phone: 866-880-0070, Email:
info@MGIsettlement.com.
If you have any questions about the Settlement of the Class Action, you may contact
Lead Counsel by writing:
Bradley E. Beckworth, Esq.
Jeffrey J. Angelovich, Esq.
Nix, Patterson & Roach
205 Linda Drive
Daingerfield, Texas 78638
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