NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/westernunion/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Colorado on behalf of purchasers of The Western Union Company (“Western Union” or the “Company”) (NYSE:WU) common stock during the period between February 7, 2012 and October 30, 2012, inclusive (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/westernunion/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Western Union and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Western Union, headquartered in Englewood, Colorado, is a provider of money movement and payment services worldwide.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial performance and future prospects, including failing to disclose 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.
The complaint further alleges that on October 30, 2012, the Company disclosed disappointing third quarter 2012 financial results and reduced its 2012 revenue, operating margin and earnings per share outlook, blaming the Company’s disastrous results and outlook in large part on the implementation of new system requirements in its Mexican operations required to comply with the Southwest Border Agreement. As a result of the new requirements, the complaint alleges that the Company was forced to terminate its relationship with 40% of its Mexican locations, as many of its agents were unable to meet the new heightened standards, and that the disruption in the Company’s Mexican locations further caused a disruption in Western Union’s Latin American operations. In addition, the Company disclosed that it was subject to intense competition in certain of its key corridors. As a result of these disclosures, the price of Western Union stock plummeted $5.20 per share on October 31, 2012, a decline of 29%.
Plaintiff seeks to recover damages on behalf of all purchasers of Western Union common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in ten offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.
