Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether certain officers and directors of The Western Union Company (NYSE:WU) violated state or federal laws in connection with statements issued regarding Western Union’s business, operations and financial prospects.
A class action lawsuit against the Company has been filed on behalf of shareholders who purchased Western Union stock between February 7, 2012 and October 30, 2012 (the “Class Period”). Jim Baker, lead analyst at Johnson & Weaver, LLP, had this comment about the class action lawsuit: “Officers or directors should be held liable, rather than the Company and its shareholders, if they are found to be responsible for the claims made in the Class Action.”
The complaint contends that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business operations and financial prospects, including failing to divulge that Western Union: (a) was experiencing difficulties complying with its increased compliance duties required by its Southwest Border Agreement with the state of Arizona, which was to crack down on illegal money laundering practices between the states along the U.S. and Mexican border; (b) was spending significantly more than forecast on its efforts to satisfy the Southwest Border Agreement compliance and monitoring program; (c) had downplayed the impact that changes in its compliance and regulatory environment were having on the Company’s operations during the Class Period, including its operations in Mexico and Latin America; and (d) was under competitive pricing pressure to charge a premium for its core money transfer product.
On this news, the Company’s stock price dropped $5.20 per share on October 31, 2012, to close at down 29%.
If you have continuously held shares prior to February 2012 you may have standing to hold the Company harmless from the damage the officers and directors caused and make them personally responsible. You may also be able to assist in reforming the Company’s corporate governance to prevent future wrongdoing.