Cohen Milstein Sellers & Toll PLLC Announces the Investigation of Magnum Hunter Resources Corporation
WASHINGTON--(BUSINESS WIRE)-- Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Magnum Hunter Resources Corporation ("Magnum" or the "Company") and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Class action lawsuits were filed in the U.S. District Courts for the Southern District of New York and the Southern District of Texas by other law firms on behalf of purchasers of the common stock of Magnum Hunter Resources Corporation (NYS: MHR) between January 17, 2012 and April 22, 2013, inclusive (the "Class Period").
The complaints allege that Magnum and certain of its officers and directors ("Defendants") misrepresented and/or failed to disclose that: (1) errors existed in the Company's financial reporting practices relating to Property Accounting and Transfers of Unproved Properties, Oil and Gas Reserves, Income Taxes, Ability to Meet Debt Covenants, Capitalized Interest, and Assets Held for Sale, among others; (2) Magnum lacked adequate internal and financial controls; and (3) as a result of the foregoing, the Company's statements during the Class Period were materially false and misleading.
On October 22, 2012, the Company reported that due to an "inadvertent accounting error," its second quarter financials should no longer be relied upon, and that the error had resulted in a significant understatement of its previously reported second quarter loss. Magnum further reported that its disclosure controls and procedures were not effective as of June 30, 2012, due to a material weakness in the accounting for share-based compensation expense. The following day Magnum reported that it had replaced its Senior Vice President of Accounting and Chief Accounting Officer.
On November 14, 2012, Magnum filed its restated second quarter Form 10-Q which revealed that the scope of the restatement was broader and had resulted in an even greater understatement of its second quarter loss than initially indicated. The Company reported that it had also understated and incorrectly reported several other items, and that its internal controls were not effective due to material weaknesses, including a "[l]ack of sufficient, qualified personnel to design and manage an effective control environment."
On February 28, 2013, Magnum reported that it was unable to timely file its 2012 Form 10-K and disclosed that its internal control weaknesses had not been remedied. By March 18, Magnum reported that it was still working with its auditor, PricewaterhouseCoopers ("PwC") to complete the 2012 audit and cautioned that it had not yet corrected the previously disclosed material weaknesses and "may identify additional material weaknesses as it finalizes its financial statements for fiscal 2012."
Less than a month later, on April 16, Magnum reported that it had dismissed PwC "effective immediately". The Company further revealed that PwC had identified various material weaknesses that might affect the reliability of the Company's results, that these matters were not investigated prior to PwC's dismissal, and that PwC believed the scope of the 2012 audit should be significantly expanded. The price of Magnum shares fell from $3.32 to $2.83 on April 17. After the market close on April 22, Magnum filed an amended Form 8-K which included PwC's letter expressing its disagreement with the Company's description of the events and circumstances preceding its dismissal. The price of Magnum shares fell from $2.50 to $2.48 on April 23.
Cohen Milstein encourages all investors who purchased Magnum common stock between January 17, 2012 and April 22, 2013 or former employees with information concerning this matter to contact the firm.
If you are a Magnum shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein's Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than June 22, 2013 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach Gardens, and is active in major litigation pending in federal and state courts throughout the nation.
The firm's reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: email@example.com; firstname.lastname@example.org
KEYWORDS: United States North America District of Columbia
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