Law Firm of Wohl & Fruchter LLP Announces Investigation of Magnum Hunter Resources Corporation
The law firm of Wohl & Fruchter LLP announces that it is investigating
possible violations of federal securities laws by officers and directors
of Magnum Hunter Resources Corporation (Magnum) (NYSE: MHR).
On April 16, 2013, Magnum disclosed that it had dismissed its auditor,
PricewaterhouseCoopers LLP (“PwC”), after PwC advised Magnum of material
weaknesses in the Company’s internal accounting controls. PwC further
identified certain issues that could have a material impact on the
fairness or reliability of the Company's financial statements, and thus
required further investigation before PwC would sign off on the
Company’s Form 10-K for the fiscal year ended December 31, 2012. The
issues identified by PwC included: (i) valuation of the Company’s oil
and gas properties; (ii) calculation of the Company’s oil and gas
reserves; (iii) the Company’s position with respect to certain tax
matters; (iv) the Company’s accounting of its acquisition of NGAS
Resources, Inc.; and (v) the Company’s compliance with certain debt
covenants.
Upon the above news, on April 17, 2013, MHR shares dropped over 14% from
$3.32/share to $2.83/share, resulting in shareholder losses of over $82
million.
Persons with relevant information, and MHR shareholders with questions
about this investigation, are invited to contact the attorney below, or
our Firm by calling 866.582.8140.
Additional information is available on our website at: http://www.wohlfruchter.com/cases/mhr.
About Wohl & Fruchter
Wohl & Fruchter LLP represents plaintiffs in litigation arising from
fraud and other fiduciary breaches by corporate managers, as well as
other complex litigation matters. Please visit our website, www.wohlfruchter.com,
to learn more about our Firm, or contact one of our partners.
This release may be deemed to constitute attorney advertising.
