MoneyGram Board Beats Oversight Suit Involving Fraud, Laundering

Current and former MoneyGram International Inc. board members are off the hook for failures leading up to a money laundering prosecution that cost the company nearly $250 million, a Delaware judge ruled, rejecting a shareholder lawsuit that alleged at most “feckless oversight,” not actionable misconduct.

The company’s directors “may have been wistless or overly reliant on management,” but “bad oversight is not bad-faith oversight,” Vice Chancellor Sam Glasscock III wrote for the Delaware Chancery Court.

The derivative suit stemmed from a Justice Department probe into the MoneyGram’s laundering controls, and other related federal investigations, that culminated in settlements and deferred ...