Finkelstein Thompson Announces Filing of Securities Fraud Class Action Against First Marblehead Corp.

WASHINGTON, April 30, 2008 (Lawfuel) — Notice is hereby given
that Finkelstein Thompson LLP has filed a Class Action lawsuit in the
United States District Court for the District of Massachusetts on
behalf of a class (the “Class”) consisting of all persons or entities
who purchased or otherwise acquired the common stock of First
Marblehead Corporation (“First Marblehead” or the “Company”) (NYSE:FMD)
between August 10, 2006 and April 7, 2008 inclusive (the “Class
Period”).

A copy of the Complaint is available from the court or from Finkelstein
Thompson LLP. Please call us toll-free at (877) 337-1050 to discuss
this action or to obtain a copy of the Complaint. You may also contact
us by email at [email protected], or visit our website at

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The Complaint alleges that First Marblehead and certain of its officers
and directors violated the Securities Exchange Act of 1934 (“Exchange
Act”). First Marblehead engages in the packaging and securitization of
student loans. The Education Resources Institute (“TERI”) is a
nonprofit organization that guaranteed nearly all student loans
originated by First Marblehead that resulted in default.

According to the Complaint, First Marblehead misrepresented or failed
to disclose that: (a) First Marblehead’s portfolio had experienced
increasing default rates and was not performing according to the
Company’s representations; (b) TERI, as guarantor of First Marblehead
loan securities, was not financially equipped to handle the increasing
defaults; (c) a securitization in the second quarter of fiscal year
2008 was unlikely; (d) First Marblehead had a larger role in the
management of TERI’s day-to-day affairs than represented to investors;
(e) First Marblehead was unable to manage the risk of TERI’s portfolio;
and (f) First Marblehead lacked adequate internal and financial
controls. On April 8, 2008, First Marblehead revealed that TERI had
filed for Chapter 11 Bankruptcy protection. On this news, First
Marblehead shares plunged 37% to close at $4.86 per share on April 8,
2008, on unusually heavy trading.

Plaintiff seeks to recover damages on behalf of Class members and is
represented by Finkelstein Thompson LLP. Finkelstein Thompson LLP has
spent three decades delivering outstanding representation to
institutional and individual clients in connection with securities and
other finance-related litigation, and has been appointed as lead or
co-lead counsel in dozens of shareholder class actions. Indeed, the
firm has served in leadership roles in cases that have recovered over
$1 billion for investors and consumers.

If you are a member of the class, you may request that the Court
appoint you as lead plaintiff by no later than June 9, 2008. A lead
plaintiff is a class member appointed by the Court to direct the
litigation on behalf of the class. Although a class member need not be
appointed as a lead plaintiff to receive a proportionate share of any
proceeds of the litigation, lead plaintiffs make important decisions
that could affect the prosecution of the class claims, including
decisions concerning settlement. The securities laws create a
rebuttable presumption that the plaintiff with the largest financial
interest in the litigation is the most adequate to serve as a lead
plaintiff. Any member of the purported class may move the Court to
serve as lead plaintiff through the counsel of their choice and
returning a form to counsel or communicating with counsel is not
necessary to participate in any recovery.

If you are a First Marblehead shareholder and wish to discuss the case,
please contact our Washington, D.C. office toll-free at (877) 337-1050,
or by email at [email protected]

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