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
NEW ORLEANS -- April 19, 2013
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 (email@example.com) or
KSF Partner Melinda Nicholson (firstname.lastname@example.org) toll free at
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.
Kahn Swick & Foti, LLC
Lewis Kahn, 877-515-1850
Melinda Nicholson, 877-515-1850
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