MFIN INVESTIGATION: Hagens Berman, National Trial Attorneys, Encourages Medallion Financial Corp. (MFIN) Investors with Losses to Contact Firm's Attorneys, Firm Investigating Possible Accounting and Other Fraud

SAN FRANCISCO, Jan. 4, 2022 /PRNewswire/ -- Hagens Berman urges Medallion Financial Corp. (NASDAQ: MFIN) investors with significant losses to submit your losses now.  

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Medallion Financial Corp. (MFIN) Investigation:

In the past, Medallion and its senior management have repeatedly assured investors that the carrying value of the company's crown jewel (Medallion Bank), including reported fair values of its taxi medallion loan portfolio, was supported by the Bank's taxi medallion valuations.

These claims were brought into serious question on Dec. 29, 2021, when the U.S. Securities and Exchange Commission sued Medallion, its President/Chief Operating Officer (Andrew Murstein) and certain "stealth" public relations specialists for securities fraud. 

The SEC's lawsuit alleges that Medallion and Murstein fraudulently inflated the company's total assets and shareholders' equity by over $140 million at year-end 2016 and over $115 million at year-end 2017.  According to the SEC, the defendants were able to do this by concealing the deterioration in the Bank's taxi medallion collateral and, when necessary, firing the firm that refused to accept defendants' collateral overvaluations and hiring another firm that would (in exchange for "much more lucrative investment banking work in the future"). 

The SEC also alleges Medallion and Murstein schemed to silence short-sellers and bloggers that were writing the company's epitaph.  According to the SEC, the company and Murstein hired "stealth" public relations specialists who anonymously and misleadingly promoted investment merits of Medallion online in publications such as SeekingAlpha and TheStreet.com.  Murstein allegedly oversaw and approved the misleading promotions.

This news drove the price of Medallion shares sharply lower on Dec. 29, 2021.

"We're focused on investors' losses and the full extent to which Medallion may have lied about its financial condition and promotion practices," said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Medallion Financial, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.

Whistleblowers: Persons with non-public information regarding Medallion Financial should consider their options to help in the investigation or take advantage of the SEC Whistleblower program.  Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.  For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
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Contact:
Reed Kathrein, 844-916-0895

SOURCE Hagens Berman Sobol Shapiro LLP