The Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of MGT Capital Investments, In...
October 04 2016 - 2:18PM
Business Wire
Law Offices of Howard G. Smith announces that a class
action lawsuit has been filed 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”).
Investors suffering losses on their MGT investments are
encouraged to contact the Law Offices of Howard G. Smith to discuss
their legal rights in this class action at 888-638-4847 or by email
to howardsmith@howardsmithlaw.com.
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.
If you purchased shares of MGT during the Class Period you may
move the Court no later than November 21, 2016 to
ask the Court to appoint you as lead plaintiff. 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 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 howardsmith@howardsmithlaw.com, or visit our website
at http://www.howardsmithlaw.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/20161004006470/en/
Law Offices of Howard G. SmithHoward G. Smith,
Esquire215-638-4847888-638-4847howardsmith@howardsmithlaw.comwww.howardsmithlaw.com
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