FMD SHAREHOLDER ALERT: The Law Firm of Wohl & Fruchter LLP Announces Investigation of The First Marblehead Corporation
August 19 2013 - 10:00AM
Business Wire
The law firm of Wohl & Fruchter LLP is investigating
possible violations of federal securities laws by officers and
directors of The First Marblehead Corporation (First Marblehead)
(NYSE: FMD).
On August 15, 2013, after the market close, First Marblehead
issued a press release announcing its financial and operating
results for the fourth quarter and full fiscal year ended June 30,
2013.
In the release, the Company disclosed that, in connection with
an ongoing IRS audit of its federal income tax returns, the Company
expects to receive a Notice of Proposed Adjustment (“NOPA”)
pursuant to which the IRS would seek to disallow losses that
generated tax refunds previously received by the Company, as well
as require the Company to include in its tax returns any taxable
income from the sale of a certain trust certificate.
The Company estimated that the disallowance of the loss, coupled
with the additional taxable income, would create a proposed
adjustment equal to approximately $300 million plus interest.
Upon the news, FMD shares declined over 36%, to close at
$1.00/share on August 16, 2013.
Wohl & Fruchter’s investigation concerns whether First
Marblehead management improperly concealed from investors, among
other things, the potential magnitude of the proposed adjustment
that might result from the IRS audit.
Persons with relevant information, and FMD shareholders with
questions about this investigation, are invited to contact the
attorney below, or our Firm by calling 866.833.6245.
Additional information is available on our website at:
http://www.wohlfruchter.com/cases/fmd.
About Wohl & Fruchter
Wohl & Fruchter LLP represents plaintiffs in litigation
arising from fraud and other fiduciary breaches by corporate
managers, as well as other complex litigation matters. Please visit
our website, www.wohlfruchter.com, to learn more about our Firm, or
contact one of our partners.
This release may be deemed to constitute attorney
advertising.
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