PHILADELPHIA, April 18, 2008 (Lawfuel) — The law firm of
Spector Roseman & Kodroff, P.C. announces that a securities class
action lawsuit was commenced in the United States District Court for
the District of Massachusetts, on behalf of purchasers of the common
stock of First Marblehead Corporation (“First Marblehead” or the
“Company”) (NYSE:FMD) between August 10, 2006 through April 7, 2008,
inclusive (the “Class Period”).
The Complaint charges that First Marblehead and certain of its officers
and directors violated federal securities laws by issuing materially
false and misleading statements about the quality of First Marblehead’s
securitizations. Specifically, the Complaint charges, among other
things, that First Marblehead misrepresented the level of default rates
in its portfolio and the default rates’ effect on the Company’s ability
to securitize additional student loan underwritings. The Complaint also
states that First Marblehead recklessly disregarded that its student
loan guarantor, The Education Resources Institute, was under-reserved
and unable to adequately insure student loans underwritten by the
Company. The guarantor filed for bankruptcy protection on April 7,
2008.
If you purchased First Marblehead securities during the Class Period,
you may, no later than June 9, 2008, move to be appointed as a Lead
Plaintiff in this class action. A Lead Plaintiff is a representative
chosen by the Court that acts on behalf of other class members in
directing the litigation. The Private Securities Litigation Reform Act
of 1995 directs Courts to assume that the class member(s) with the
“largest financial interest” in the outcome of the case will best serve
the class in this capacity. Courts have discretion in determining which
class member(s) have the “largest financial interest,” and have
appointed Lead Plaintiffs with substantial losses in both absolute
terms and as a percentage of their net worth.
If you sustained substantial losses in First Marblehead securities
during the Class Period, wish to join this action, or have any
questions concerning this notice or your rights or interests, please
contact plaintiff’s counsel Robert M. Roseman toll-free at (888)
844-5862 or e-mail at classaction@srk-law.com for a more thorough
explanation of the Lead Plaintiff selection process. If you have
relatively small losses, your ability to participate in any recovery
will be protected by the Lead Plaintiff(s), and you need take no
affirmative steps at this time. For more detailed information about the
firm, please visit its website at http://www.srk-law.com.
Spector Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania,
concentrates its practice in complex litigation including actions
dealing with securities laws, antitrust, contract and commercial
claims. The firm is active in major litigation pending in federal and
state courts throughout the United States. The firm’s reputation for
excellence has been recognized on repeated occasions by courts which
have appointed the firm as lead counsel in numerous major class actions
involving violations of the federal securities laws and the federal
antitrust laws, as well as consumer fraud. As a result of the efforts
of the firm, and its members, hundreds of millions of dollars have been
recovered through judgments and settlements on behalf of thousands of
defrauded shareholders and companies.
