As if their troubles could not get any worse, My Rich Uncle, which had filed for a Chapter 7 Bankruptcy in February of 2009, now faces a class action lawsuit. Here are the details of the complaint filed by Izard Nobel LLP:
The Complaint charges that MRU and certain of its officers and
directors violated federal securities laws by making materially false
statements concerning the Company's
business and financial results.
Specifically, defendants failed to disclose, among other things, that:
(i) the market for Auction Rate Securities ("ARS"), which the Company
issued in its first student loan securitization, was illiquid and
existed at the whim of the broker-dealers; (ii) the illusion of
liquidity created by the broker-dealers allowed the Company to
securitize its student loans on favorable terms; (iii) that once the
true nature of the ARS market became known, the terms of future
securitizations by the Company would not be favorable to the Company;
and (iv) that without the favorable terms available in the ARS market
as a result of manipulation by the broker-dealers, the Company would
not have sufficient capital to originate loans, making the Company's
business model untenable.
Regarding this pattern of non-disclosure, I found their lack of transparency regarding loan origination fees not very consumer-friendly (others might think of less gracious terms) based on my shopping experience in September of 2008.
sir,
i did my master in business adminstration form Pakistan. But i am not satisfied form my careear. that,s why i am searching sponsership form any philanthropist institution. i got your id and now i am applying for my fate.
i need your kind support and help regarding education. i cannot afford the expanse of my education.
regard
Posted by: Ejlal Karim | October 22, 2009 at 03:34 AM