MoneyGram Settles Federal Lawsuit For $80 Million
Payment serviced provider MoneyGram International Inc. has agreed to settle a federal lawsuit filed by investors for $80 million. The class-action lawsuit stems from sub prime real estate investment losses in 2007 and 2008. The Plaintiffs contended company executives hid their losses from investors. The agreement requires MoneyGram to pay $80 million in cash to the Plaintiffs with all but $20 million to be paid by the company’s insurer. The losses led to company to seek a finical bailout in early 2008. The settlement agreement is subject to notification of shareholders and final approval of the court.