SAN DIEGO and ENGLEWOOD, Colo., Jan. 23, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of The Western Union Company (NYSE: WU) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of Colorado. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between February 7, 2012 and October 30, 2012 (the "Class Period"). Western Union provides money movement and payment services worldwide.
Western Union Accused of Misstating Financial Results
According to the complaint, shares of Western Union fell $5.20 per share, or 29%, to close at October 31, 2012, following the company's release of the disappointing earnings for the third quarter 2012 and reduced performance outlook for 2012. The company attributed the results to the difficulties of complying with a 2010 Southwest Border Agreement it entered into with the state of Arizona. Further, Western Union disclosed that because of the Agreement, the company was forced to terminate its relationship with 40% of its Mexican locations which would also negatively impact the company's Latin American operations.
The complaint also alleges that Western Union made materially false and misleading statements to investors and failed to disclose facts regarding difficulties the company was experiencing in complying with its duties required by under the Agreement. As a result of these difficulties, Western Union was not on track to meet its obligations under the agreement by the initial deadline of July 31, 2013, and the costs of implementing the agreement were substantially greater than Western Union had previously disclosed.
Western Union Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
If you invested in Western Union and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/western-union
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP