A lawsuit was filed by a current investor in NYSE:FMD shares over alleged wrongdoing by certain directors at The First Marblehead Corporation and NYSE:FMD stockholders should contact the Shareholders Foundation at firstname.lastname@example.org
San Diego, CA -- (SBWIRE) -- 10/28/2013 -- An investor who currently holds NYSE:FMD shares filed a lawsuit against certain directors of The First Marblehead Corporation over alleged breaches of fiduciary duties.
If you purchased shares of the First Marblehead Corporation (NYSE:FMD) in 2011 or earlier and currently hold any of those NYSE:FMD shares, you have certain options and you should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants exposed The First Marblehead Corporation and its shareholders to a $300 million tax adjustment that is 3.5 times The First Marblehead’s revenue in the years 2012 and 2013 combined. The plaintiff says that the defendants allegedly knew that it should have been more careful in calculating its tax write-offs and caused damage to the company’s reputation and viability in the market to such an extent that NYSE:FMD shares declined to under $1 per share within a few weeks.
Furthermore, the plaintiff alleges that certain directors voted to pay First Marblehead Corporation’s chairman and CEO a $2 million bonus as a reward for devising the trust certificate sale plan.
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. The First Marblehead Corporation said that its federal income tax returns have been under audit by 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 as low as $0.726 per share in September 2013.
On October 25, 2013, NYSE:FMD shares closed at $1.01 per share.
Those who purchased shares of The First Marblehead Corporation have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego