Moneygram moneygram ripple february sec

United States, March 5, 2021 /AlexaBlockchain/ – Shareholder rights law firm Robbins LLP announces that a purchaser of MoneyGram International, Inc. (NASDAQ: MGI) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between June 17 2019 and February 22, 2021.

MoneyGram International, Inc. (MGI) Misled Investors About

According to the complaint, on June 17, 2019, MoneyGram announced it was entering into a strategic partnership with Ripple Labs, Inc. Ripple is a blockchain technology company and the developer of cryptocurrency XRP. As part of the partnership, Ripple agreed to invest up to $50 million in MoneyGram stock. On this news, the price of MoneyGram stock increased over 150%.


In addition, we present adjusted operating income and adjusted operating margin for our two reporting segments. The following tables include a full reconciliation of non-GAAP financial measures to the related GAAP financial measures. The equivalent GAAP financial measures for projected results are not provided, and projected results do not reflect the potential impact of certain non-GAAP adjustments, which include (but in future periods, may not be limited to) stock-based, contingent and incentive compensation costs; compliance enhancement program costs; direct monitor costs; legal and contingent matter costs; restructuring and reorganization costs; currency changes; and the tax effect of such items.
We cannot reliably predict or estimate if and when these types of costs, adjustments or changes may occur or their impact to our financial statements.

In addition, the Company is not planning for any benefit from Ripple market development fees in the first quarter. Due to the uncertainty concerning their ongoing litigation with the SEC, the Company has suspended trading on Ripple’s platform. In the first quarter of 2020, the Company realized a net expense benefit of $12.1 million from Ripple market development fees.

Based on the combination of these factors, the Company anticipates reporting Adjusted EBITDA of approximately $50 million in the first quarter of 2021.

Conference Call

MoneyGram International will host a conference call on February 22, at 9:00 a.m.

ET, to discuss its results.

Moneygram moneygram ripple february security

These risks and uncertainties include, but are not limited to:

• the impact of the COVID-19 pandemic or future pandemics on our business, including the potential for work stoppages, lockdowns, shelter-in-place, or restricted movement guidelines, service delays, lower consumer and commercial activity;

• our ability to compete effectively;

• our ability to maintain key agent or biller relationships, or a reduction in business or transaction volume from these relationships, including our largest agent, Walmart, whether through the introduction by Walmart of additional competing “white label” branded money transfer products or otherwise;

• our ability to manage fraud risks from consumers or agents;

• the ability of us and our agents and other commercial relationships to comply with U.S.

Gram leverages its modern, mobile, and API-driven platform and collaborates with the world’s leading brands to serve millions of people each year through both its walk-in business and its direct-to-consumer digital business.

With a strong culture of innovation and a relentless focus on utilizing technology to deliver the world’s best customer experience, MoneyGram is leading the evolution of digital P2P payments.

For more information, please visit MoneyGram.com and follow @MoneyGram.

Forward-Looking Statements

This communication contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect MoneyGram’s current beliefs, expectations or intentions regarding future events and speak only as of the date they are made.

Words such as “may,” “might,” “will,” “could,” “should,” “would,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “forecast,” “outlook,” “continue,” “currently,” and similar expressions are intended to identify such forward-looking statements. The statements in this communication that are not historical statements are forward-looking statements within the meaning of the federal securities laws. Specific forward-looking statements include, among others, statements regarding the Company’s projected results of operations and specific factors expected to impact the Company’s results of operations.

Ripple”) partnership, was viewed as an unregistered and therefore unlawful security by the U.S. Securities and Exchange Commission (“SEC”); and (ii) 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.

On December 22, 2020, the SEC filed a lawsuit against Ripple, alleging that Ripple’s cryptocurrency XRP is an unregistered security in violation of the securities laws. The SEC alleged a brazen scheme in which Ripple received legal advice as early as 2012 that XRP could be considered an investment contract and therefore a security that needs to be registered under the securities laws.

▪ The decline was largely due to the COVID-19 pandemic which mostly impacted our first half 2020 operating results

◦ Investment revenue totaled $20.0 million, or a $34.7 million decline, due to the lower prevailing interest rates

Total operating expenses were $1,114.2 million decreased $118.9 million or 10% due to the agile management of expenses through the pandemic as the Company continues to benefit from its Digital Transformation

Income before taxes of $6.1 million for the full year, with an after-tax loss of $7.9 million primarily related to a deferred tax asset valuation allowance of $12.0 million of which $10.1 million was recognized in the first quarter

Adjusted EBITDA was $241.3 million, a 13% increase on a reported basis and an 11% increase on a constant currency basis.

last year, The US Securities and Exchange Commission (SEC) filed an action against Ripple Labs Inc. and two of its executives, who are also significant security holders, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering. The value of XRP, the token associated with Ripple, crashed over 40% after the announcement.

With regard to MoneyGram’s involvement, the SEC complaint explains that the major non-investment use of the XRP cryptocurrency is transferring money on Ripple’s ODL platform and that in order to convince anyone to use ODL to transfer money, Ripple had to make a $50 million equity investment and pay sufficient financial compensation to an entity referred to as the “Money Transmitter,” i.e., MoneyGram.

In order to convince anyone to use ODL to transfer money, the SEC alleged, Ripple had to make a $50 million equity investment and pay significant financial compensation to an entity that the SEC’s Complaint refers to only as the “Money Transmitter.” Of course, the “Money Transmitter” is MoneyGram. In addition, the SEC’s complaint describes how MoneyGram itself took part in the sale of unregistered XRP securities on the open market.

On December 23, 2020, MoneyGram announced that it had “not currently been notified or been made aware of any negative impact to its commercial agreement with Ripple but will continue to monitor for any potential impact as developments in the lawsuit evolve.

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