MoneyGram To Hand Bilked Investors $80M

Law360, New York (February 25, 2010, 5:52 PM EST) -- MoneyGram International Inc. said Wednesday it would fork over $80 million to settle consolidated securities litigation in which investors accused the money-order firm of knowingly misstating its financial health to bolster its stock value, resulting in $1.6 billion in losses.

The Minneapolis-based company said it had entered into memoranda of understanding in the U.S. District Court for the District of Minnesota to settle a shareholder class action and a shareholder derivative lawsuit related to losses it suffered on subprime and other risky asset-backed securities in 2007...
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