NEW YORK--(BUSINESS WIRE)--
The law firm of Wohl & Fruchter LLP announces that it is investigating possible violations of federal securities laws by officers and directors of Magnum Hunter Resources Corporation (Magnum) (MHR).
On April 16, 2013, Magnum disclosed that it had dismissed its auditor, PricewaterhouseCoopers LLP (“PwC”), after PwC advised Magnum of material weaknesses in the Company’s internal accounting controls. PwC further identified certain issues that could have a material impact on the fairness or reliability of the Company's financial statements, and thus required further investigation before PwC would sign off on the Company’s Form 10-K for the fiscal year ended December 31, 2012. The issues identified by PwC included: (i) valuation of the Company’s oil and gas properties; (ii) calculation of the Company’s oil and gas reserves; (iii) the Company’s position with respect to certain tax matters; (iv) the Company’s accounting of its acquisition of NGAS Resources, Inc.; and (v) the Company’s compliance with certain debt covenants.
Upon the above news, on April 17, 2013, MHR shares dropped over 14% from $3.32/share to $2.83/share, resulting in shareholder losses of over $82 million.
Persons with relevant information, and MHR shareholders with questions about this investigation, are invited to contact the attorney below, or our Firm by calling 866.582.8140.
Additional information is available on our website at: http://www.wohlfruchter.com/cases/mhr.
About Wohl & Fruchter
Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
This release may be deemed to constitute attorney advertising.
- PricewaterhouseCoopers LLP
J. Elazar Fruchter, 845-425-4658