Magnum Hunter Resources Corp (NYSE:MHR) Shareholder Class Action Lawsuit

On April 24, 2013, news came out about a lawsuit against Magnum Hunter Resources Corporation. It was filed at the United States District Court for the Southern District of New York. According to the lawsuit, Magnum Hunter Resources Corporation violated Federal Securities laws. They allegedly issued false and misleading statements. Initiated by an investor in the shares, the lawsuit is for statements made between January 17, 2012 and April 22, 2013.

If you have purchased shares of Magnum Hunter Resources Corp (NYSE:MHR) between January 17, 2012 and April 22, 2013, call 1-800-934-2921 right now to protect your rights.

Filing deadline:  06/24/2013

The complaint was filed on behalf of individuals and organizations that purchased the publicly traded securities during this time period. The plaintiff alleges that the officers and directors of the company intentionally made materially false statements about how reliable the public financial reports were. 

The plaintiff specifically claims that Magnum Hunter Resources deliberately tried to mislead investors about their financial statements and internal controls for an ulterior motive. According to the plaintiff, the company sought to sell hundreds of million dollars of common stock. Magnum Hunter Resources is thought to have misled investors to increase sales of preferred shares and publicly traded debt through a series of offerings in 2012 and 2013. 

Beginning on April 16, 2012, Magnum Hunter Resources Corporation issued its update for the first quarter of the year. This company wide update was released only slightly after a report was filed with the Securities and Exchange Commission on April 10. On this date, Magnum Hunter Resources Corporation stopped used PricewaterhouseCoopers LLP as their public accounting form. This action was intentionally taken due to orders from the Audit Committee and the Board of Directors. 

The trouble began to arise when the former accounting firm and the corporation disagreed over why they separated. On April 22, Magnum Hunter Resources Corporation released news of this disagreement. A letter was released from the accounting firm. According to the firm, they had discovered information that involved the reliability or fairness of Magnum Hunter Resource’s financial disclosures. By the time PricewaterhouseCoopers LLP was dismissed, the underlying fairness issue had not been resolved. 

As news of the dispute rose to light, shares in Magnum Hunter Resources Corporation began to fall drastically. On April 9, 2013, shares were traded at a level of $4.00 per share. By April 22, 2013, MHR shares dropped to a low of $2.39 per share. 

Although shares rebounded slightly to $2.69 a piece by April 26, 2013, they were still exceptionally far below their 52 week high of $6.45. 

Own shares of Magnum Hunter Resources Corp (NYSE:MHR)? Contact us to protect your rights.

If you have purchased shares of Magnum Hunter Resources Corp (NYSE:MHR) between January 17, 2012 and April 22, 2013, call 1-800-934-2921 right now to protect your rights. Complete the form on this page or call attorney Bill Kyros at 1-800-934-2921 right now to protect your rights. 

Complete the form below for a free no obligation consultation. 

 

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