MoneyGram 2009 Annual Report Download - page 124

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Rent expense under operating leases was $13.8 million, $12.7 million and $11.4 million during 2009, 2008 and 2007, respectively.
Minimum future rental payments for all non-cancelable operating leases with an initial term of more than one year are (amounts in
thousands):
2010 $ 12,230
2011 11,218
2012 7,755
2013 5,843
2014 5,315
Thereafter 5,661
Total $ 48,022
Legal Proceedings — We are involved in various claims, litigations and government inquiries that arise from time to time in the ordinary
course of our business. All of these matters are subject to uncertainties and outcomes that are not predictable with certainty. We accrue
for these matters as any resulting losses become probable and can be reasonably estimated. Further, we maintain insurance coverage for
many claims and litigations alleged. Management does not believe that after final disposition any of these matters is likely to have a
material adverse impact on our financial position.
Federal Securities Class Actions — The Company and certain of its present and former officers and directors are defendants in 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 Consolidated Complaint seeks recovery of losses incurred
by stockholder class members in connection with their purchases of the Company's securities. On February 24, 2010, the parties entered
into a non-binding Memorandum of Understanding pursuant to which the parties agreed, subject to final approval of the parties and the
court, to settle this action for a cash payment of $80 million, all but $20 million of which would be paid by the Company's insurance
carriers. On March 9, 2010, the parties entered into a Settlement Agreement to settle the case on terms consistent with the Memorandum
of Understanding. On March 10, 2010, the Court issued an Order that preliminarily approved the settlement. The parties will seek final
approval of the settlement at a hearing currently set for June 18, 2010. The Company recorded an $80.0 million liability for the settlement
and a $60.0 million receivable from the insurance carriers, resulting in a $20.0 million net charge to the Consolidated Statements of Loss
in 2009.
Minnesota Stockholder Derivative Claims — Certain of the Company's present and former officers and directors are defendants in a
consolidated shareholder derivative action in the United States District Court for the District of Minnesota captioned In re MoneyGram
International, Inc. Derivative Litigation. The Consolidated Complaint in this Action, which was filed on November 18, 2009 and arises
out of the same matters at issue in the securities class action, alleges claims on behalf of the Company for, among other things, breach of
fiduciary duties, unjust enrichment, abuse of control, and gross mismanagement. On February 24, 2010, the parties entered into a non-
binding Memorandum of Understanding pursuant to which they agreed, subject to final approval of the parties and the court, to settle this
action. The Memorandum of Understanding provides for changes to MoneyGram's business, corporate governance and internal controls,
some of which have already been implemented in whole or in part in connection with MoneyGram's recent recapitalization. The
Company also agreed to pay attorney fees and expenses to the plaintiff's counsel in the amount of $1.3 million, with $1.0 million to be
paid by the Company's insurance carriers. The Memorandum of Understanding is subject to negotiation and execution of definitive
settlement documents containing usual and customary settlement terms, notice to shareholders and approval of the Court. The
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