A lawsuit was filed on behalf of investors in The First Marblehead Corporation (NYSE:FMD) shares over alleged securities laws violations. Deadline: October 28, 2013. NYSE:FMD investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com

San Diego, CA -- (SBWire) -- 09/03/2013 --An investor, who purchased shares of The First Marblehead Corporation (NYSE:FMD), filed a lawsuit in the U.S. District Court for the District of Massachusetts 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 (NYSE:FMD) between November 4, 2010 and August 15, 2013, and / or those who purchased NYSE:FMD shares prior to November 2010 and currently hold any of those shares, have certain options and for certain investors are short and strict deadlines running. Deadline: October 28, 2013. NYSE:FMD investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges, on behalf of all persons or entities who purchased or otherwise acquired securities of The First Marblehead Corporation (NYSE:FMD) between November 4, 2010 and August 15, 2013, 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.

Shares of The First Marblehead Corporation (NYSE:FMD) rose from $0.659 per share in late 2012 to as high as $1.88 per share in late July 2013.

Then on August 15, 2013, The First Marblehead Corporation reported its fourth quarter and ful year financial results. The First Marblehead’s Total Revenue rose from $40.71 million for the 12 months period that ended on June 30, 2012 to $46.02 million for the 12 months period that ended on June 30, 2013, while its Net Income of $1.1 billion for the 12 months period that ended on June 30, 2012 turned into a Net Loss of $50.20 million for the 12 months period that ended on June 30, 2013.

Among other things, The First Marblehead Corporation also provided an update on the IRS audit. The First Marblehead Corporation said that its federal income tax returns have been under audit by the Internal Revenue Service (the "IRS") in connection with the sale of the trust certificate of the NC Residual Owners Trust ("Trust Residuals"). The First Marblehead Corporation said that as part of that audit process, it expects to receive a Notice of Proposed Adjustment ("NOPA"). The First Marblehead Corporation said that while the NOPA, when issued, is an initial IRS position and not a final determination, and as a result, does not require any tax payment at this time, it expects that the NOPA would seek to disallow the loss that generated the tax refunds previously received by the Company as well as require the Company to include in its tax returns any taxable income of the Trust Residuals from the March 31, 2009 sale date through June 30, 2011. 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 $0.913 per share on August 19, 2013.

On August 28, 2013, NYSE:FMD shares closed at $0.831 per share.

Those who purchased shares of The First Marblehead Corporation (NYSE:FMD), have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com