MoneyGram Pays $10M To End Investor Suit Over Stock Deal

Law360, Wilmington (July 20, 2012, 7:30 PM EDT) -- MoneyGram International Inc. agreed to a $10 million settlement on Friday in a class action alleging the wire transfer company's 2011 recapitalization improperly benefited Goldman Sachs Group Inc. and another controlling stockholder at the expense of minority interests.

Several shareholders sued the Dallas-based company last year in Delaware Chancery Court over the recapitalization, where the controlling shareholders — private equity firm Thomas H. Lee Partners LP and affiliates of Goldman — converted 29 percent of their $760 million of preferred stock to common stock.

The two...
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