Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Magnum Hunter Resources Corporation Business Wire NEW YORK -- April 25, 2013 Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/magnumhunter/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Magnum Hunter Resources Corporation (“Magnum Hunter”) publicly traded securities (NYSE: MHR, MHR-PD, MHR-PE, MHR-PC) during the period between January 17, 2012 and April 22, 2013 (the “Class Period”). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from April 23, 2013. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/magnumhunter/. 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. The complaint charges Magnum Hunter and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Magnum Hunter 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 issued materially false and misleading statements regarding the reliability of its publicly reported financial reports. It is alleged that investors were misled concerning the reliability of Magnum Hunter’s financial statements and internal controls in order to, among other things, facilitate the sale by Magnum Hunter of hundreds of millions of dollars’ worth of its common stock, preferred shares and publicly traded debt in multiple offerings conducted during the Class Period. The complaint further alleges that on April 16, 2013, Magnum Hunter disclosed that it had dismissed its “independent” 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 forced to disclose that PwC disagreed with its account of their parting, disclosing 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.” The complaint alleges that following the April 16, 2013 disclosure of PwC’s potential disagreement with Magnum Hunter’s accounting practices, which required additional investigation; Magnum Hunter’s resulting termination of PwC; Magnum Hunter’s resulting inability to provide timely audited financial results for fiscal 2012 and its subsequent admission of significant defects in its internal controls; and the April 22, 2013 confirmation that PwC had concluded the Company’s previously reported financial reports did not fairly or reliably reflect its actual financial results, the price of Magnum Hunter’s publicly traded securities plummeted, erasing billions of dollars in market capitalization. Plaintiff seeks to recover damages on behalf of all purchasers of Magnum Hunter securities during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information. Contact: Robbins Geller Rudman & Dowd LLP Samuel H. Rudman, 800-449-4900 David A. Rosenfeld firstname.lastname@example.org
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Magnum Hunter Resources Corporation
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