Glancy Binkow & Goldberg LLP Announces Investigation of Magnum Hunter Resources Corporation
Glancy Binkow & Goldberg LLP announces that it is investigating
potential claims on behalf of investors of Magnum Hunter Resources
Corporation (“MHRC” or the “Company”) (NYSE:MHR) concerning possible
violations of federal securities laws. The investigation focuses on
allegations that certain statements issued by MHRC misrepresented the
Company’s operations and financial performance and prospects. MHRC is an
independent oil and gas company that engages in the acquisition,
exploration, exploitation, development and production of crude oil,
natural gas and natural gas liquids primarily in West Virginia, Ohio,
Texas, Kentucky, North Dakota and Saskatchewan, Canada.
On April 16, 2013, MHRC disclosed that at the direction of the Audit
Committee of the Company's Board of Directors MHRC had dismissed its
auditor, PricewaterhouseCoopers LLP (“PwC”), after PwC advised the
Company of material weaknesses in the Company’s internal accounting
controls. PwC identified certain issues that may have a material impact
on the fairness or reliability of MHRC’s consolidated financial
statements, including: (1) valuation of the Company’s oil and gas
properties; (2) calculation of the Company’s oil and gas reserves; (3)
the Company’s position with respect to certain tax matters; (4) the
Company’s accounting of its acquisition of NGAS Resources, Inc.; and (5)
the Company’s compliance with certain debt covenants.
As a result of this news, MHRC shares declined nearly 15%, or $0.49 per
share, to close at $2.83 per share on April 17, 2013 on heavy trading
volume.
If you purchased MHRC shares before April 17, 2013, if you have
information or would like to learn
more about these claims, or if you wish to discuss these matters or
have any questions concerning this announcement or your rights or
interests with respect to these matters, please contact Michael
Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park
East, Suite 2100, Los Angeles, California 90067, by telephone at (310)
201-9150, Toll Free at (888) 773-9224, by e-mail to shareholders@glancylaw.com,
or visit our website at http://www.glancylaw.com.
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