MGI - MoneyGram falls amid lawsuit from U.S. NY AG over remittance transfers (update)

Update 1:33pm: Adds MoneyGram response to lawsuit. MoneyGram (NASDAQ:MGI), which is agreed to be sold to Madison Dearborn in February, dropped 7.7% after the New York Attorney General and the Consumer Financial Protection Bureau sued the company over remittance transfers. "When consumers have complained of remittance-transfer errors, MoneyGram has repeatedly failed to provide the investigations, responses, or remedies required by the Rule," according to the lawsuit. "MoneyGram has failed to comply with policy-and-procedure and document-retention requirements." MoneyGram previously disclosed in its 10-K that on February 25, 2021, CFPB told MGI of its intent to take legal action against MGI based on four alleged violations under the Remittance Rule, the Electronic Fund Transfer Act and the Consumer Financial Protection Act. MGI said in the 10-K that the parties had begun to discuss a potential settlement that would include a monetary penalty, subject to agreement on terms of a proposed stipulated order. MGI accrued $7.5

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MoneyGram falls amid lawsuit from U.S., NY AG over remittance transfers (update)