MoneyGram 2011 Annual Report Download - page 27

Table of Contents
Item 1B. UNRESOLVED STAFF COMMENTS
None.
Item 2. PROPERTIES
Location Use Segment(s) Using Space Square Feet Lease Expiration
Dallas, TX Corporate Headquarters Both 46,291 6/30/2021
Minneapolis, MN Global Operations Center Both 134,000 12/31/2015
Brooklyn Center, MN Global Operations Center Both 75,000 4/30/2015
Lakewood, CO Call Center Global Funds Transfer 113,849 3/31/2015
London, UK Global Operations Center Both 20,738 1/31/2021
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. Not included in the above table is approximately 34,211 square feet in Minneapolis, Minnesota that has been sublet. Subsequent to December 31,
2011, the Company entered into an agreement to lease 25,287 square feet of office space in Frisco, Texas and an agreement for early termination of one of
its leases in Lakewood, CO consisting of 45,684 square feet. The Company has vacated this portion of the property per the agreement. We also have a
number of other smaller office locations in Arkansas, California, Florida, New York, France, Germany, Italy, Spain and the United Kingdom, as well as
small sales and marketing offices in Australia, China, Greece, India, Italy, the Netherlands, Nigeria, Russia, South Africa, Spain, Ukraine, United Arab
Emirates, and Switzerland. We believe that our properties are sufficient to meet our current and projected needs.
Item 3. LEGAL PROCEEDINGS
The matters set forth below are subject to uncertainties and outcomes that are not predictable with certainty. The Company accrues for these matters as any
resulting losses become probable and can be reasonably estimated. Further, the Company maintains insurance coverage for many claims and litigations
alleged.
Litigation Commenced Against the Company:
Shareholder Litigation — On April 15, 2011 a complaint was filed in the Court of Chancery of the State of Delaware by Willie R. Pittman purporting to be
a class action complaint on behalf of all shareholders and a shareholder derivative complaint against the Company, THL, Goldman Sachs and each of the
Company’s directors. Ms. Pittman alleges in her complaint that she is a stockholder of the Company and asserts, among other things, (i) breach of fiduciary
duty and disclosure claims against the Company’s directors, THL and Goldman Sachs, (ii) breach of the Company’s certificate of incorporation claims
against the Company, THL and Goldman Sachs, and (iii) claims for aiding and abetting breach of fiduciary duties against Goldman Sachs. Ms. Pittman
purports to sue on her own behalf and on behalf of the Company and its stockholders. Pittman sought to, among other things, enjoin or rescind the 2011
Recapitalization. On April 29, 2011 the plaintiff filed an amended complaint to add two additional plaintiffs, Susan Seales and Stephen Selzer. On May 16,
2011 a hearing to enjoin or rescind the 2011 Recapitalization was held in the Court of Chancery of the State of Delaware, and at the hearing, the plaintiffs’
request for a preliminary injunction was denied. The 2011 Recapitalization was completed on May 18, 2011. Since that time, Ms. Pittman has withdrawn as
a putative class representative; Ms. Seales and Mr. Selzer remain as plaintiffs. The plaintiffs seek to recover damages of some or all of the cash and stock
payments made to THL and Goldman Sachs by the Company in connection with the recapitalization transaction. This litigation is ongoing and is scheduled
for trial in the second quarter of 2012.
On May 12, 2011 a complaint was filed in the County Court at Law No. 3 in Dallas County, Texas by Hilary Kramer purporting to be a class action
complaint on behalf of all shareholders and a shareholder derivative complaint against the Company, THL, Goldman Sachs and each of the Company’s
directors. Ms. Kramer alleges
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