BENSALEM, Pa.--(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 firstname.lastname@example.org.
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 email@example.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.