Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of MGT Capital Investments, Inc. Investors (MGTI)
BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that purchased MGT Capital Investments, Inc. (“MGT” or the “Company”) (OTC: MGTI) securities between October 9, 2015 to September 7, 2018, inclusive (the “Class Period”). MGT investors have until November 27, 2018 to file a lead plaintiff motion.
Investors that suffered 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 [email protected].
On September 7, 2018, the U.S. Securities and Exchange Commission (“SEC”) filed a lawsuit against MGT and certain defendants, alleging that defendants were participants in “highly profitable ‘pump-and-dump’ schemes…from 2013 through 2018” in the stock of three public companies, including MGT. The SEC complaint further alleges that the schemes “enrich[ed] Defendants by millions of dollars, [and] left retail investors holding virtually worthless shares.” On this news, shares of MGT fell $0.195, or over 33%, to close at $0.395 per share on September 10, 2018, thereby damaging investors.
The complaint alleges MGT Capital Investments Inc. made materially false and/or misleading statements and/or failed to disclose that: (1) defendants were engaged in a pump-and-dump scheme to artificially inflate MGT Capital’s stock price; (2) this illicit scheme caused MGT Capital to make false and misleading statements, which would result in governmental scrutiny, including from the SEC; (3) certain of the defendants exercised control over MGT Capital and its management; (4) consequently, the illicit scheme would ultimately cause MGT Capital’s stock to become delisted from NYSE MKT; and (5) as a result, defendants’ statements about MGT Capital’s business and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased shares of MGT during the Class Period, have information or would like to learn more about these claims, or 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 protected], or visit our website at www.howardsmithlaw.com.
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