The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of MGT Capital Investments Inc. (OTCMKTS: MGTI) who purchased shares between October 9, 2015 and September 7, 2018. The action, which was filed in the United States District Court for the District of New Jersey, alleges that the Company violated federal securities laws.
In particular, the MGT Capital lawsuit alleges that (1) Defendants were engaged in an illegal pump-and-dump scheme to artificially inflate MGT Capital’s stock price; (2) the “Scheme Defendants”–Defendants Ladd, Honig, Stetson, Brauser, O’Rourke, and Groussman–had a history of engaging in illegal conduct in connection with the purchase and sale of securities; (3) the Scheme Defendants were a “group”, pursuant to Section 13 of the Exchange Act; (4) the Scheme Defendants exercised control over the Company; (5) the Company’s acquisition of D-Vasive Inc. was part of Defendants’ illegal pump-and-dump scheme to artificially inflate MGT Capital’s stock price; (6) Defendants’ illicit scheme caused MGT Capital to make false and misleading statements, which would result in governmental and regulatory scrutiny; (7) the scheme would result in the delisting of MGT Capital’s stock from NYSE MKT; and (8) 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.
Shareholders have until November 27, 2018 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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