Girard Gibbs is investigating Magnum Hunter Resources Corp. (NYSE: MHR) and its officers and directors for possible violations of federal securities laws. Magnum Hunter investors who wish to learn more about the investigation, and persons with information relating to the investigation, should contact Girard Gibbs attorney Jonathan Levine toll free at (866) 981-4800.
Magnum Hunter is an independent oil and gas company that operates primarily in West Virginia, Ohio, Texas, Kentucky, and North Dakota. In July 2012, Magnum Hunter hired PricewaterhouseCoopers as its independent accountant.
But on April 16, 2013, Magnum Hunter announced that its board of directors had unanimously decided to fire PwC as its accountant. The company also disclosed that, prior to its termination, PwC had identified five areas that “if further investigated may have a material impact on the fairness or reliability” of Magnum Hunter’s financial statements, including:
Magnum Hunter’s valuation of its oil and gas properties;
Magnum Hunter’s assumptions concerning its oil and gas reserves;
Magnum Hunter’s income taxes; and
Magnum Hunter’s internal controls over areas such as internal auditing, financial reporting, and tax and accounting departments.
Magnum Hunter’s share price lost nearly a fifth of its value after this announcement, leading to losses of over $120 million for investors.