An investigation on behalf of current long term investors in The First Marblehead Corporation (NYSE:FMD) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NYSE:FMD stockholders should contact the Shareholders Foundation at firstname.lastname@example.org
San Diego, CA -- (SBWIRE) -- 09/24/2013 -- An investigation on behalf of investors, who currently hold shares of The First Marblehead Corporation (NYSE:FMD), was announced concerning whether certain officers and directors of The First Marblehead Corporation breached their fiduciary duties owed to NYSE:FMD stockholders in connection with certain statements made between November 4, 2010 and August 15, 2013.
Investors who are current long term investors in The First Marblehead Corporation (NYSE:FMD) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NYSE:FMD stocks follows a lawsuit filed recently against The First Marblehead Corporation over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:FMD stocks concerns whether certain First Marblehead Corporation officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the District of Massachusetts the plaintiff alleges the First Marblehead Corporation 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.
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 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 Sept. 23, 2013, NYSE:FMD shares closed at $0.715 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