NEW YORK--(BUSINESS WIRE)--
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in MGT Capital Investment (“MGT” or the “Company”) (Other OTC:MGTI) of the November 27, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in MGT stock or options between October 9, 2015 and September 7, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/MGTI. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased MGT securities between October 9, 2015 and September 7, 2018 (the “Class Period”). The case, Klingberg v. MGT Capital Investments, Inc. et al., No. 18-cv-14380 was filed on September 28, 2018 and has been assigned to Judge William H. Walls.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company’s executives were engaged in a pump-and-dump scheme to artificially inflate MGT Capital’s stock price; (2) this illicit scheme caused MGT Capital to make false and misleading statements, which would result in governmental scrutiny, including from the Securities and Exchange Commission (“SEC”); (3) certain Scheme Defendants exercised control over MGT Capital and its management; (4) consequently, the illicit scheme would ultimately cause MGT Capital’s stock to become delisted from NYSE MKT; and (5) as a result, Defendants’ statements about MGT Capital’s business and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Specifically, on September 19, 2016, pre-market, MGT Capital issued a press release announcing that on September 15, 2016, MGT Capital had received a subpoena from the SEC requesting “certain information from the Company.”
On this news, the Company’s share price fell from $3.26 per share on September 16, 2018 to $2.52 per share on September 19, 2018—a $0.74 or 22.7% drop.
Then, on September 20, 2016, pre-market, MGT announced that the NYSE had informed the Company the previous day that it would “not approve the listing on the Exchange of the 43.8 million shares that the Company is required to issue in order to complete the closing of the D-Vasive merger.”
On this news, the Company’s share price fell from $2.52 per share on September 19, 2018 to $1.89 per share on September 20, 2018—a $0.63 or 25.0% drop.
Then, on October 19, 2016, the NYSE MKT issued a press release announcing that it would commence proceedings to delist the common stock of MGT from the exchange. The following day, on October 20, 2016, MGT issued a press release stating it was considering appealing the previous day’s delisting decision by the NYSE MKT.
On this news, the Company’s stock price fell from $2.36 per share on October 19, 2016 to $1.29 per share on October 21, 2016—a $1.07 or 45.34% drop.
Then, on September 7, 2018, the SEC issued a press release entitled “SEC Charges Microcap Fraudsters for Roles in Lucrative Market Manipulation Schemes.” The press release revealed, among other things, that “a group of prolific South Florida-based microcap fraudsters led by Barry Honig manipulated the share price of the stock of three companies in classic pump-and-dump schemes.”
On this news, the Company’s share price fell—over two trading days—from $0.59 per share on September 6, 2018 to $0.40 per share on September 10, 2018—a $0.19 or 32.2% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding MGT’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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