MoneyGram Gets Dismissal of Suit Over Fraud Prevention Measures

MoneyGram International Inc. investors failed to adequately allege that the payment transfer company misrepresented its compliance with fraud-prevention requirements, a federal court ruled.

The investors’ allegations about intent, or scienter, by the company and its leadership “are uniformly cursory, generalized, and speculative,” Judge Martha M. Pacold said Monday for the US District Court for the Northern District of Illinois. “They do not give rise even to a rough impression that defendants were acting with ulterior motives—much less a strong inference that any defendant made any particular statement with scienter,” she said.

• The investors alleged that MoneyGram’s services attract those who ...