MGT Capital Investments, Inc. Sued By Block & Leviton For Securities Fraud
BOSTON, Sept. 22, 2016 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com) announces that it has filed a class action lawsuit against MGT Capital Investments, Inc. ("MGT" or the "Company") (NYSE MKT: MGT) and its Chief Financial and Executive Officer for violations of the federal securities laws.
Shares in MGT are down nearly 40% since the announcements that on September 19, 2016, MGT received a subpoena from the SEC "requesting certain information," and that, later the same day, MGT received a notification from the NYSE that "it will not approve the listing on the Exchange of the 43.8 million shares that the Company is required to issue in order to complete the closing of the D-Vassive merger." This news and the resultant stock drop has caused tens of millions in losses to investors.
The case, brought on behalf of investors who purchased or otherwise acquired MGT securities between May 9, 2016 and September 20, 2016 (the "Class Period"), alleges that the defendants made false and/or misleading statements and/or failed to disclose: (1) the risk that its stock to be issued in connection with the acquisitions of D-Vasive and Demonsaw may not be listed by the NYSE; and (2) that MGT was under inquiry by the SEC prior to September 19, 2016.
If you wish to serve as a lead plaintiff, you must move the Court no later than November 21, 2016. As a member of the class, you may seek to file a motion to serve as a lead plaintiff or take no action and remain an absent class member. To learn more about your options or if you have any questions about the litigation, please contact attorneys Steven Harte or Bradley Vettraino at (617) 398-5600, by email at firstname.lastname@example.org or email@example.com, or visit www.blockesq.com/mgt.
Confidentiality to whistleblowers or others with relevant information is assured.
Block & Leviton LLP is a Boston-based law firm representing investors nationwide. The firm's lawyers have collectively been prosecuting securities cases on behalf of individual and institutional investors for over 50 years, and have recovered billions of dollars on their behalf. Block & Leviton's investigations into corporate wrongdoing were recently covered by the New York Times.
The case, filed September 22, 2016, is pending in the United States District Court for the Southern District of New York, and is captioned Exley v. MGT Capital Investments, Inc., et al., Ca No. 1:16-cv-07415 (S.D.N.Y.). The court is located at 500 Pearl Street, New York, New York 10007.
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