ENGLEWOOD CLIFFS, N.J., April 22, 2013 (GLOBE NEWSWIRE) -- Gardy & Notis, LLP, a national law firm advocating for shareholder rights, is investigating a potential securities fraud on behalf of investors of Magnum Hunter Resources Corporation.
The investigation focuses on claims on behalf of purchasers of Magnum Hunter Resources securities concerning whether a series of statements regarding its financial operations were materially false and misleading at the time they were made.
On April 16, 2013, Magnum Hunter Resources disclosed that the Company dismissed its auditor, PricewaterhouseCoopers LLP (PwC), after the auditor discovered information that "may have a material impact on the fairness or reliability of Company's consolidated financial statements" and advised the Company of material weaknesses in the Company's internal controls over financial reporting. The issues identified by PwC included: (1) valuation of the Company's oil and gas properties; (2) calculation of the Company's oil and gas reserves; (3) the Company's position with respect to certain tax matters; (4) the Company's accounting of its acquisition of NGAS Resources, Inc.; and (5) the Company's compliance with certain debt covenants.
Magnum Hunter Resources shares dropped over 14% on April 17, 2013 in response to the news.
If you invested in Magnum Hunter Resources's stock or options before April 17, 2013 and would like to discuss your legal rights, call Mark Gardy or Charles Germershausen at 201-567-7377 or e-mail firstname.lastname@example.org or email@example.com. Gardy & Notis, LLP also encourages anyone with information regarding Magnum Hunter Resources's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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