Glancy Prongay & Murray LLP Files Securities Class Action Lawsuit Against MGT Capital Investments, Inc.
September 23 2016 - 11:35AM
Business Wire
Glancy Prongay & Murray LLP (“GPM”) announces that it has
filed a class action lawsuit in the United States District Court
for the Southern District of New York on behalf of a class (the
“Class”) consisting of persons and entities that acquired MGT
Capital Investments, Inc. (“MGT” or the “Company”) (NYSE MKT: MGT)
securities between May 9, 2016, and September 20,
2016, inclusive (the “Class Period”).
If you are a member of the Class described above, you may move
the Court no later than November 21, 2016, to serve as lead
plaintiff. Please contact Lesley Portnoy at 888-773-9224 or
310-201-9150, or at shareholders@glancylaw.com to discuss this
matter.
The filed complaint alleges that throughout the Class Period,
Defendants made materially false and/or misleading statements, as
well as failed to disclose material adverse facts about the
Company’s business, operations, and prospects. Specifically,
Defendants made false and/or misleading statements and/or failed to
disclose: (1) that the Company was engaging and/or had engaged in
conduct that would result in an SEC investigation; (2) that the SEC
investigation and the underlying conduct would cause the NYSE to
refuse to list the Company’s 43.8 million shares required for the
D-Vasive merger; (3) that, as such, the D-Vasive merger would
likely not be completed; and (4) that, as a result of the
foregoing, Defendants’ statements about MGT’s business, operations,
and prospects, were false and misleading and/or lacked a reasonable
basis
On September 19, 2016, the Company issued a press release
announcing that on September 15, 2016 the Company had received a
subpoena from the SEC requesting “certain information” from the
Company. On this news, MGT’s stock price fell $0.74 per share, or
22.7%, to close at $2.52 per share on September 19, 2016, on
unusually heavy trading volume, thereby injuring investors.
On September 20, 2016, MGT issued a press release entitled “MGT
Provides Update on Status of D-Vasive Acquisition.” Therein, the
Company disclosed that the NYSE informed the Company on September
19, 2016, that the NYSE would not approve the listing of the 43.8
million shares that the Company was required to issue in order to
complete the closing of its D-Vasive merger. On this news, MGT’s
stock price fell $0.63 per share, or 25%, to close at $1.89 per
share on September 20, 2016, on unusually heavy trading volume.
To be a member of the Class you need not take any action at this
time; you may retain counsel of your choice or take no action and
remain an absent member of the Class. If you wish to learn
more about this action, or if you have any questions
concerning this announcement or your rights or interests with
respect to these matters, please contact Lesley Portnoy,
Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park
East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150,
by e-mail to shareholders@glancylaw.com, or visit our website
at http://www.glancylaw.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: http://www.businesswire.com/news/home/20160923005609/en/
Glancy Prongay & Murray LLP, Los AngelesLesley Portnoy,
310-201-9150 or
888-773-9224shareholders@glancylaw.comwww.glancylaw.com
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