NEW YORK, April 25, 2013 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of a class (the "Class") of purchasers of Magnum Hunter Resources ("Magnum" or the "Company") (NYSE: MHR) securities between May 3, 2012, and April 16, 2013 (the "Class Period").
Magnum is an independent oil and gas company that engages in the acquisition, exploration, exploitation, development and production of crude oil, natural gas and natural gas liquids primarily in West Virginia, Ohio, Texas, Kentucky, North Dakota and Saskatchewan, Canada. On April 16, 2013, Magnum disclosed that at the direction of the Audit Committee of the Company's Board of Directors, Magnum had dismissed its auditor, PricewaterhouseCoopers LLP ("PwC"), after PwC advised the Company of material weaknesses in the Company's internal accounting controls. PwC identified certain issues that may have a material impact on the fairness or reliability of Magnum's consolidated financial statements, including: (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.
As a result of this news, Magnum shares declined nearly 15%, or $0.49 per share, to close at $2.83 per share on April 17, 2013 on unusually heavy trading volume.Plaintiffs seek to recover damages on behalf of all Class members who invested in Magnum stock during the Class Period. If you invested in Magnum stock as described above during the Class Period, and either lost money on the transaction or still hold the stock, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than June 24, 2013. A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.