MoneyGram 2008 Annual Report Download - page 27

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Table of Contents
Item 1B. UNRESOLVED SEC COMMENTS
None.
Item 2. PROPERTIES
Location Use Segment(s) Using Space Square Feet Lease Expiration
Minneapolis, MN Global Headquarters Both 168,211 12/31/2015
Brooklyn Center, MN Global Operations Center Both 75,000 1/31/2012
Brooklyn Center, MN Global Operations Center Both 44,026 1/31/2012
Lakewood, CO Call Center Global Funds Transfer 113,735 3/31/2012
Information concerning our material properties, all of which are leased, including location, use, approximate area in square feet and lease
terms, is set forth above. We also have a number of other smaller office locations in California, Florida, New York, Tennessee, France,
Germany, Italy and the United Kingdom, as well as small sales and marketing offices in Australia, China, Greece, Hong Kong, India,
Nigeria, Russia, South Africa, Spain, Ukraine and United Arab Emirates. We believe that our properties are sufficient to meet our current
and projected needs.
Item 3. LEGAL PROCEEDINGS
Legal proceedings — We are party to a variety of legal proceedings, including those that arise in the normal course of our business. All
legal proceedings are subject to uncertainties and outcomes that are not predictable with assurance. We accrue for legal proceedings as
losses become probable and can be reasonably estimated. Significant legal proceedings arising outside the normal course of our business
are described below. While the results of these proceedings cannot be predicted with certainty, management believes that after final
disposition, any monetary liability will not be material to our financial position. Further, the Company maintains insurance coverage for
many of the claims alleged.
Federal Securities Class Actions — The Company and certain of its officers and directors are parties to a consolidated class action case in
the United States District Court for the District of Minnesota captioned In re MoneyGram International, Inc. Securities Litigation. The
Consolidated Complaint was filed on October 3, 2008, and alleges against each defendant violations of Section 10(b) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") and Rule 10b-5 under the Exchange Act and alleges against Company officers
violations of Section 20(a) of the Exchange Act. The Consolidated Complaint alleges failure to adequately disclose, in a timely manner,
the nature and risks of the Company's investments, as well as unrealized losses and other-than-temporary impairments related to certain
of the Company's investments. The complainant seeks recovery of losses incurred by stockholder class members in connection with their
purchases of the Company's securities.
ERISA Class Action — On April 22, 2008, Delilah Morrison, on behalf of herself and all other MoneyGram 401(k) Plan participants,
brought an action in the United States District Court for the District of Minnesota. The complaint alleges claims under the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), including claims that the defendants breached fiduciary duties by
failing to manage the plan's investment in Company stock, and by continuing to offer Company stock as an investment option when the
stock was no longer a prudent investment. The complaint also alleges that defendants failed to provide complete and accurate information
regarding Company stock sufficient to advise plan participants of the risks involved with investing in Company stock and breached
fiduciary duties by failing to avoid conflicts of interests and to properly monitor the performance of plan fiduciaries and fiduciary
appointees. Finally, the complaint alleges that to the extent that the Company is not a fiduciary, it is liable for knowingly participating in
the fiduciary breaches as alleged. On August 7, 2008, plaintiff amended the complaint to add an additional plaintiff, name additional
defendants and additional allegations. For relief, the complaint seeks damages based on what the most profitable alternatives to Company
stock would have yielded, unspecified equitable relief, costs and attorneys' fees.
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