Scott+Scott LLP Files Class Action Lawsuit Against First Marblehead Corp. on Behalf of Investors

NEW YORK, May 13, 2008 (Lawfuel) — On May 12, 2008, Scott+Scott
LLP filed a class action against First Marblehead Corp. (“First
Marblehead” or the “Company”) (NYSE:FMD), and certain officers and
directors, in the U.S. District Court for the District of
Massachusetts. The action is on behalf of those purchasing First
Marblehead common stock during the period beginning August 10, 2006, to
April 7, 2008, inclusive (the “Class Period”), for violations of the
Securities Exchange Act of 1934. The complaint alleges that defendants
made false and misleading statements and material omissions regarding
the Company’s business and operations and that, as a result, the price
of the Company’s securities was inflated during the Class Period,
thereby harming investors.

If you purchased First Marblehead stock during the Class Period and
wish to serve as a lead plaintiff in the action, you must move the
Court no later than June 9, 2008. Any member of the investor class may
move the Court to serve as lead plaintiff through counsel of its
choice, or may choose to do nothing and remain an absent class member.
If you wish to discuss this action or have questions concerning this
notice or your rights, please contact Scott+Scott
([email protected], (800) 404-7770, (860) 537-5537 or visit the
Scott+Scott website, http://www.scott-scott.com) for more information.
There is no cost or fee to you.

According to the complaint, during the Class Period, the Company issued
materially false and misleading statements that misrepresented and
failed to disclose that loans underlying the Company’s bonds were
experiencing increasing default rates; that the guarantor of those
loans did not have the money to buy all of the loans that were in
default; that the Company lacked adequate internal and financial
controls; and that, as a result of the foregoing, banks would look
elsewhere to package their loans, which would have a negative impact on
First Marblehead’s business and operations.

On April 8, 2008, the Company announced that the guarantor of the loans
had filed a bankruptcy petition under Chapter 11. On this news, shares
of the Company’s stock fell $4.16 per share, or 54%, over the next five
trading days, as the investing public continued to digest this news.

The plaintiff is represented by Scott+Scott, a firm with significant
experience in prosecuting major securities, antitrust and employee
retirement plan actions throughout the United States. The firm
represents pension funds, foundations, individuals and other entities
worldwide.

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