SOURCE: Holzer Holzer & Fistel, LLC

May 05, 2008 11:00 ET

Holzer Holzer & Fistel, LLC Has Filed a Shareholder Class Action Against First Marblehead Corporation (NYSE: FMD)

ATLANTA, GA--(Marketwire - May 5, 2008) - Holzer Holzer & Fistel, LLC announces that it has filed a shareholder class action lawsuit against First Marblehead Corporation (the "Company") (NYSE: FMD). The complaint charges First Marblehead Corporation and certain of its officers and directors with violations of the Securities Exchange Act of 1934.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose: (a) that the loans underlying the Company's bonds were experiencing increasing default rates; (b) that the guarantor of those loans -- TERI -- did not have the money to buy all of the loans that were in default; (c) that the Company lacked adequate internal and financial controls; and (d) 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.

All shareholders who purchased First Marblehead Corporation common stock between August 10, 2007 and April 7, 2008 with questions concerning their legal options should contact Holzer Holzer & Fistel, LLC and its attorneys Michael I. Fistel Jr., Esq. or Marshall P. Dees, Esq. via email at mfistel@holzerlaw.com or mdees@holzerlaw.com, or via toll-free telephone at (888) 508-6832.

If you are a shareholder with significant losses, you are encouraged to contact the firm to inquire about applying for the lead plaintiff position in this case. The last day to apply for lead plaintiff is June 9, 2008.

Holzer Holzer & Fistel, LLC is an Atlanta, Georgia law firm that dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. More information about the firm is available through its website, www.holzerlaw.com and upon request from the firm.