WAYNE, Pa., April 26, 2013 /PRNewswire/ -- Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/mhr) announces that a class action lawsuit 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").
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.
If you are a member of the class, you may, no later than June 24, 2013, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/mhr or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at [email protected]. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.