Hagens Berman Notifies Investors of June 24, 2013, Lead Plaintiff Deadline in Magnum Hunter Resources Corp. Class Action; Seeks Investigative Help
Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm,
today announced it is investigating claims made against Magnum Hunter
Resources Corp. (NYSE: MHR) (“MHR” or “the company”) and notifies
investors of the June 24, 2013, deadline to move to be a lead plaintiff.
Investors who purchased MHR stock between May 3, 2012, and April 16,
2013, inclusive (the “class period”), and have significant losses, are
encouraged to contact Hagens Berman Partner Reed Kathrein, who is
leading the firm’s investigation, by emailing MHR@hbsslaw.com
or calling (510) 725-3000. Investors may also contact the firm by
visiting http://www.hb-securities.com/investigations/MHR.
On April 16, 2013, MHR revealed that it dismissed its auditor,
PriceWaterhouseCoopers LLP (PwC). MHR disclosed “that PwC advised the
Company that information had come to PwC's attention that if further
investigated may have a material impact on the fairness or reliability
of Company's consolidated financial statements, and this information was
not further investigated and resolved to PwC's satisfaction prior to its
dismissal.” Following the disclosure, MHR’s stock price fell sharply,
from a close of $3.32 per share on April 16, 2013, to a close of $2.83
per share the following day.
Hagens Berman’s investigation centers on whether or not MHR deliberately
falsified the company’s financial statements, and if so, how and when.
More specifically, the investigation is focused on whether:
-
MHR’s estimation of the valuation of the Company’s oil and gas
properties is supported;
-
the 2011 reserve report for significant subsidiaries of MHR was
prepared in accordance with applicable standards;
-
a material non-cash impairment charge should have been recognized for
certain properties;
-
assumptions relating to the Company’s initial accounting in connection
with its acquisition in 2011 of NGAS Resources, Inc. were supported;
-
interest expense associated with its unproved oil and gas properties
were properly capitalized.
“Our concern is that PwC may have been fired right as they were about to
uncover serious weaknesses in MHR’s financial statements,” said Mr.
Kathrein. “If there are issues that made those statements unreliable for
investors, the company may be on the hook for certain investor losses.”
Investors who wish to serve as lead plaintiff in the case must move the
court no later than June 24, 2013. Any member of the putative class may
move the Court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent class member.
Hagens Berman reminds whistleblowers with inside information that
rewards may be available to individuals who report information leading
to a successful enforcement action by the Securities and Exchange
Commission. Under the new SEC whistleblower program, whistleblowers who
provide original information may receive rewards totaling up to 30
percent of any successful recovery made by the SEC.
About
Hagens Berman
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law
firm with offices in 10 cities. The Firm represents investors,
whistleblowers, workers and consumers in complex litigation. More about
the law firm and its successes can be found at www.hbsslaw.com.
The Firm’s securities law blog is at http://www.meaningfuldisclosure.com.
