Shareholder Class Action Filed Against First Marblehead Corporation by The Law Firm of Schiffrin Barroway Topaz & Kessler, LLP

RADNOR, Pa., April 18 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Massachusetts on behalf of all purchasers of securities of First Marblehead Corporation Inc. ("First Marblehead" or the "Company") from August 10, 2006 through April 7, 2008, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbtklaw.com.

The Complaint charges First Marblehead and certain of its officers and directors with violations of the Securities Exchange Act of 1934. First Marblehead provides services related to private student loans. The Education Resources Institute ("TERI") is an organization that guarantees student loans originated by Marblehead, and operated out of First Marblehead's office space. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's portfolio was experiencing increasing default rates and was therefore not performing as expected; (2) that it was unlikely that the Company would complete a securitization in the second quarter of fiscal year 2008; (3) that the Company was unable to manage the risk of TERI's portfolio and that TERI was unable to guarantee FMD related loans; (4) the true nature of the Company's role in the management of TERI's affairs; (5) that the Company lacked adequate internal and financial controls; and (6) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.

Then, on April 8, 2008, the Company shocked investors when it announced that TERI had filed for bankruptcy. The Company stated that it was analyzing the implications of this filing on its lenders, investors and borrowers, and stated that it was working on securing an alternative guarantor (as well as structural solutions for loan default guarantees) for future originations. Upon the release of this news, the Company's shares declined $2.84 per share, or 36.88 percent, to close on April 8, 2008 at $4.86 per share, on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.

For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/

If you are a member of the class described above, you may, not later than June 9, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

CONTACT: Schiffrin Barroway Topaz & Kessler, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at info@sbtklaw.com