Pomerantz Law Firm Has Filed a Class Action Against Magnum Hunter Resources
Corp. and Certain Officers -- MHR
NEW YORK, April 24, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford
Dahlstrom & Gross LLP has filed a class action lawsuit against Magnum Hunter
Resources Corp. ("MHR" or the "Company") (NYSE:MHR) and certain of its
officers. The class action filed in United States District Court, Southern
District of Texas, and docketed under 13-cv-01166, is on behalf of a class
consisting of all persons or entities who purchased or otherwise acquired
securities of MHR between May 3, 2012 and April 16, 2013, both dates inclusive
(the "Class Period"). This class action seeks to recover damages against the
Company and certain of its officers and directors as a result of alleged
violations of the federal securities laws pursuant to Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased MHR securities during the Class Period,
you have until June 24, 2013 to ask the Court to appoint you as Lead Plaintiff
for the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby
at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237.
Those who inquire by e-mail are encouraged to include their mailing address,
telephone number, and number of shares purchased.
MHR is an independent exploration and production company engaged in the
acquisition, development and production of crude oil, natural gas and natural
gas liquids, primarily in West Virginia, Kentucky, Ohio, Texas, North Dakota
and Saskatchewan, Canada. The Company is active in five of the unconventional
shale resource locations in North America, namely the Marcellus Shale, Utica
Shale, Eagle Ford Shale, Pearsall Shale and Williston Basin/Bakken Shale.
The Complaint alleges that throughout the Class Period, Defendants made false
and/or misleading statements, as well as failed to disclose material adverse
facts about the Company's business, operations, and prospects. Specifically,
Defendants made false and/or misleading statements 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, Accounting regarding MHP, Prior Period
Restatements, Ability to Meet Debt Covenants, Capitalized Interest, Assets
Held for Sale; (2) the Company lacked adequate internal and financial
controls, including issues relating to: Effective Control Environment to Meet
the Company's Growth, Financial Reporting, Leasehold Property Costs, Complex
Accounting Issues and Miscellaneous Internal Control Deficiencies; and (3) as
a result of the foregoing, the Company's statements were materially false and
misleading at all relevant times.
On March 18, 2013, MHR announced that it would delay filing its annual report
on Form 10-K for the year ended December 31, 2012. The Company attributed its
delay to the discovery of "certain material weaknesses in its internal
controls over financial reporting."
On April 16, 2013, MHR announced that the Company had dismissed
PricewaterhouseCoopers LLP ("PWC") as the Company's independent registered
public auditor effective immediately. PWC, according to MHR, had identified
certain issues in the Company's financial reporting, including: (i) that
information had come to PWC's attention which 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, and (ii) the need to
significantly expand the scope of PWC's audit of the Company's consolidated
financial statements for the fiscal year ended December 31, 2012.
MHR further reported that, "PWC believe[s] that internal controls necessary
for the Company to develop reliable financial statements did not exist, and
therefore, PWC significantly expanded the scope of its audit of the Company's
consolidated financial statements for the fiscal year ended December 31, 2012
for purposes of completing such audit."On this news, the Company's shares
declined $0.49 per share, or over 14.5%, to close on April 17, 2013, at $2.83
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego,
is acknowledged as one of the premier firms in the areas of corporate,
securities, and antitrust class litigation. Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the Pomerantz Firm
pioneered the field of securities class actions. Today, more than 70 years
later, the Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of fiduciary duty,
and corporate misconduct. The Firm has recovered numerous multimillion-dollar
damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
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