Moneygram International Inc. Common Stock (NASDAQ: MGI)
According to the Complaint, MoneyGram International, Inc., together with its subsidiaries, is a money transfer company that allows customers to send money around the globe.
On June 17, 2019, MoneyGram issued a press release announcing that it was entering into a strategic partnership with Ripple Labs, Inc. ("Ripple"). Ripple is a blockchain technology company and the developer of the cryptocurrency XRP.
The Complaint alleges that during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) XRP, the cryptocurrency that MoneyGram was utilizing as part of its Ripple partnership, was viewed as an unregistered and therefore unlawful security by the SEC; (2) in the event that the SEC decided to enforce the securities laws against Ripple, MoneyGram would be likely to lose the lucrative stream of market development fees that was critical to its financial results throughout the Class Period; and (3) as a result, Defendants' public statements were materially false and/or misleading at all relevant times.