Student Loan Co. Hit With Suit Over $300M Tax Bill

Law360, Los Angeles (October 23, 2013, 7:23 PM EDT) -- A shareholder of First Marblehead Corp. slapped the student loan company with a derivative suit in Massachusetts federal court on Wednesday, saying the board of directors had improperly exposed the company and shareholders to a $300 million tax bill, costing the shareholders nearly all of their value.

Shareholder Holly Noel filed a complaint alleging the board knew it should have been more careful in calculating its tax writeoffs yet paid its members a bonus for an anticipated $430 million writeoff that was later nixed by the...
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