MoneyGram 2008 Annual Report Download - page 28

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Table of Contents
Stockholder Derivative Claims — The Company and its officers and directors were also parties to three stockholder lawsuits making
various state-law claims. Two of these lawsuits have been dismissed. The complaint filed in Hennepin County District Court by L.A.
Murphy and alleging breach of fiduciary duty, abuse of control, mismanagement and corporate waste against various of the Company's
officers and directors was dismissed with prejudice on August 14, 2008. The complaint filed in the United States District Court for the
District of Minnesota by Evelyn York and alleging breach of fiduciary duties for insider selling, misappropriation of information and
disseminating false and misleading statements, waste of corporate assets and unjust enrichment against the Company and various current
and former officers and directors was dismissed by stipulation and with prejudice on September 17, 2008.
On January 22, 2008, Russell L. Berney filed a complaint in Los Angeles Superior Court against the Company and its officers and
directors, Thomas H. Lee Partners, L.P., and PropertyBridge, Inc. and one of its officers, Jason Gardner, alleging false and negligent
misrepresentation, violations of California securities laws and unfair business practices with regard to disclosure of the Company's
investments. The complaint also alleges derivative claims against the Company's Board of Directors relating to the Board's oversight of
disclosure of the Company's investments and with regard to the Company's negotiations with Thomas H. Lee Partners, L.P. and Euronet
Worldwide, Inc. The complaint seeks monetary damages, disgorgement, restitution or rescission of stock purchases, rescission of
agreements with third parties, constructive trust and declaratory and injunctive relief, as well as attorneys' fees and costs. In July 2008, an
amended complaint was filed asserting an additional claim for declaratory relief.
SEC Inquiry — By letter dated February 4, 2008, the Company received notice from the Securities and Exchange Commission ("SEC")
that it is conducting an informal, non-public inquiry relating to the Company's financial statements, reporting and disclosures related to
the Company's investment portfolio and offers and negotiations to sell the Company or its assets. The SEC's notice states that it has not
determined that any violations of the securities laws have occurred. On February 11, 2008 and November 5, 2008, the Company received
additional letters from the SEC requesting certain information. We are cooperating with the SEC on a voluntary basis.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
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