NEW YORK, May 3, 2013 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Magnum Hunter Resources Corporation ("Magnum Hunter" or the "Company") (NYSE: MHR, MHR-PD, MHR-PE, MHR-PC).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) PricewaterhouseCoopers LLP ("PwC") had identified serious issues relating to Magnum Hunter's internal accounting controls; (2) Magnum Hunter's oil and gas properties were not appropriately valued; (3) there were issues relating to the calculation of the Company's oil and gas reserves; (4) the Company may have been violating tax regulations; (5) the Company had improperly accounted for its acquisition of NGAS Resources, Inc.; and (6) Magnum Hunter was in non-compliance with certain of its debt covenants.
On April 16, 2013, Magnum Hunter disclosed that it had dismissed its outside auditor, PricewaterhouseCoopers LLP ("PwC").
Then on April 22, 2013, Magnum Hunter disclosed that PwC disagreed with the Company's account of their parting, disclosing a letter from PwC stating that PwC had advised the Company it had received information concluding that the fairness and reliability of the Company's consolidated financial statements were questionable. This issue was not resolved to PwC's satisfaction prior to its dismissal.
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If you invested in Magnum Hunter stock or options between January 17, 2012 and April 22, 2013 and would like to discuss your legal rights, visit www.faruqilaw.com/MAGNUMHUNTER. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Magnum Hunter's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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