Magnum Hunter Investigation Initiated by Former Louisiana Attorney General: Kahn Swick & Foti, LLC Investigates Magnum Hunter Resources Corp. Following Dismissal of Auditor and Share Price Decline
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a
partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces
that KSF has commenced an investigation into Magnum Hunter Resources
Corp. (NYSE: MHR).
On April 16, 2013, Magnum Hunter disclosed that it had dismissed its
auditor, PricewaterhouseCoopers LLP (“PwC”), after PwC discovered
information that “may have a material impact on the fairness or
reliability of the company’s consolidated financial statements” and
advised the Company of material weaknesses in the Company’s internal
accounting controls, which would have to be investigated before PwC
would sign off on the Company’s Form 10-K for the year ended December
31, 2013. 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.
Following this news, shares of MHR fell over 14%, closing at $2.85 a
share on April 18, 2013.
KSF’s investigation is focusing on whether Magnum Hunter and/or its
officers and directors violated state or federal securities laws.
If you have information that would assist KSF in its investigation, or
would like to discuss your legal rights, you may, without obligation or
cost to you, e-mail or call KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com)
or KSF Partner Melinda Nicholson (melinda.nicholson@ksfcounsel.com)
toll free at 1-877-515-1850.
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General
Charles C. Foti, Jr., is a law firm focused on securities class action
and shareholder derivative litigation with offices in New York and
Louisiana. KSF’s lawyers have significant experience litigating complex
securities class actions nationwide on behalf of both institutional and
individual shareholders.
To learn more about KSF, you may visit www.ksfcounsel.com.
