Press release from Business Wire
Lieff Cabraser Announces Class Action Litigation Against Magnum Hunter Resources Corporation
Tuesday, May 14, 2013
Lieff Cabraser Announces Class Action Litigation Against Magnum Hunter Resources Corporation09:00 EDT Tuesday, May 14, 2013
SAN FRANCISCO (Business Wire) -- The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Magnum Hunter Resources Corporation (“Magnum Hunter” or the “Company”) (NYSE: MHR) between January 17, 2012 and April 22, 2013, inclusive (the “Class Period”).
If you purchased or otherwise acquired Magnum Hunter securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than June 24, 2013. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Magnum Hunter investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Douglas I. Cuthbertson of Lieff Cabraser toll-free at 1 (800) 541-7358.
Background on the Magnum Hunter Securities Class Litigation
The complaint charges Magnum Hunter and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Magnum Hunter is an oil and gas company that engages in the acquisition, exploration, exploitation, development and production of crude oil and natural gas onshore in the U.S. and Canada.
The complaint alleges that, during the Class Period, Magnum Hunter made materially false and misleading statements and omissions regarding the Company's financial condition and prospects as well as its internal controls. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (i) that the Company had material weaknesses in its valuation of its oil and gas properties, its calculation of oil and gas reserves, its position with respect to certain tax matters, the Company's accounting of its acquisition of NGAS Resources, Inc., and the Company's compliance with certain debt covenants; (ii) that, as a result, Magnum Hunter lacked adequate internal and financial controls; and (iii) that as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
The complaint further alleges that on April 16, 2013, Magnum Hunter disclosed that it had dismissed its outside auditor, PricewaterhouseCoopers LLP (“PwC”), after PwC advised it of material weaknesses in Magnum Hunter's internal accounting controls, and that PwC has demanded further investigation into: (1) the valuation of Magnum Hunter's oil and gas properties; (2) calculation of its oil and gas reserves; (3) its position with respect to certain tax matters; (4) its accounting for its acquisition of NGAS Resources, Inc.; and (5) its compliance with certain debt covenants. Then, on April 22, 2013, Magnum Hunter was disclosed that PwC disagreed with its account of their parting, revealing a letter from PwC stating that PwC had “advised the Company that information [had come] to [its] attention that [PwC had] concluded materially impact[ed] the fairness or reliability of the Company's consolidated financial statements and [that] this issue was not resolved to [PwC's] satisfaction prior to [its] dismissal.” Following these disclosures, the price of Magnum Hunter's publicly traded securities plummeted, losing billions of dollars in market capitalization.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs' law firms in the United States to receive this honor for the last ten consecutive years.
For more information about Lieff Cabraser and the firm's representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Lieff Cabraser Heimann & Bernstein, LLP
Douglas I. Cuthbertson, 800-541-7358