An Illinois federal judge on Tuesday appointed Cohen Milstein Sellers & Toll PLLC and Levi & Korsinsky LLP as co-lead counsel for a proposed securities class action against MoneyGram International Inc. stemming from claims the company lied about its anti-fraud compliance.
The Norfolk County Retirement System and Ozgur Karakurt were chosen as lead plaintiffs because their financial interest is the greatest of any of the investors who sought the position, U.S. District Judge Joan H. Lefkow said. The retirement fund and Karakurt allegedly lost $119,000 and $121,000, respectively, according to court filings.
Investors sued MoneyGram following a stock plunge in November of $2.20 per share, or more than 49 percent, on news it would pay the Federal Trade Commission $125 million to resolve claims that its agents ran international mass marketing and consumer fraud schemes, and that the money transfer company failed to have proper internal controls for anti-fraud and anti-money laundering compliance.
The FTC payment was also part of a settlement with the U.S. Department of Justice on claims MoneyGram violated a 2012 deferred prosecution agreement, the government said.
"We are pleased to be named co-lead counsel on this lawsuit against MoneyGram and look forward to holding MoneyGram executives accountable for misleading investors about the robustness of their anti-fraud program," Cohen Milstein partner Julie Reiser said in a statement to Law360.
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