Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of a class (the “Class”) comprising all purchasers of the securities of Magnum Hunter Resources Corporation (“Magnum Hunter” or the “Company”) (NYSE:MHR) between January 17, 2012 and April 22, 2013, inclusive (the “Class Period”). The Complaint alleges that defendants issued materially false and misleading statements or failed to disclose material adverse facts concerning the Company’s financial performance and prospects.
On April 16, 2013, Magnum Hunter disclosed that at the direction of the Audit Committee of the Company's Board of Directors Magnum Hunter had dismissed its auditor, PricewaterhouseCoopers LLP (“PwC”), after PwC advised the Company of material weaknesses in the Company’s internal accounting controls that may have a material impact on the fairness or reliability of Magnum Hunter’s consolidated financial statements. The Complaint alleges that during the Class Period the defendants issued false and/or misleading statements related to: (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.
No class has yet been certified in this action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Magnum Hunter securities during the Class Period, you have certain rights, and have until June 24, 2013 to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.