Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Magnum Hunter Resources Corporation

  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 djr@rgrdlaw.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
djr@rgrdlaw.com