Faruqi and Faruqui, LLP Logo
Share this page

MGT Capital Investments, Inc. (MGTI)

Other OTC:MGTI

Summary

Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In MGT Capital Investments To Contact The Firm

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in MGT Capital Investment (“MGT” or the “Company”) (Other OTC: MGTI) of the November 27, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in MGT stock or options between October 9, 2015 and September 7, 2018 and would like to discuss your legal rights, please fill out the form below.  There is no cost or obligation to you.

You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. 

The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased MGT securities between October 9, 2015 and September 7, 2018 (the “Class Period”).  The case, Klingberg v. MGT Capital Investments, Inc. et al., No. 2:18-cv-14380 was filed on September 28, 2018.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company’s executives 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 Scheme 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.

Specifically, on September 19, 2016, pre-market, MGT Capital issued a press release announcing that on September 15, 2016, MGT Capital had received a subpoena from the SEC requesting “certain information from the Company.”

On this news, the Company’s share price fell from $3.26 per share on September 16, 2018 to $2.52 per share on September 19, 2018—a $0.74 or 22.7% drop.

Then, on September 20, 2016, pre-market, MGT announced that the NYSE had informed the Company the previous day that it would “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-Vasive merger.”

On this news, the Company’s share price fell from $2.52 per share on September 19, 2018 to $1.89 per share on September 20, 2018—a $0.63 or 25.0% drop.

Then, on October 19, 2016, the NYSE MKT issued a press release announcing that it would commence proceedings to delist the common stock of MGT from the exchange. The following day, on October 20, 2016, MGT issued a press release stating it was considering appealing the previous day’s delisting decision by the NYSE MKT.

On this news, the Company’s stock price fell from $2.36 per share on October 19, 2016 to $1.29 per share on October 21, 2016—a $1.07 or 45.34% drop.

Then, on September 7, 2018, the SEC issued a press release entitled “SEC Charges Microcap Fraudsters for Roles in Lucrative Market Manipulation Schemes.”  The press release revealed, among other things, that “a group of prolific South Florida-based microcap fraudsters led by Barry Honig manipulated the share price of the stock of three companies in classic pump-and-dump schemes.” 

On this news, the Company’s share price fell—over two trading days—from $0.59 per share on September 6, 2018 to $0.40 per share on September 10, 2018—a $0.19 or 32.2% drop.

Contact Us

To contact Faruqi & Faruqi, LLP please call (877) 247-4292 or (212) 983-9330, or please
fill out the form below and a Firm representative will contact you.

  • Case:
    MGT Capital Investments, Inc. (MGTI)
  •    

* The submission of this form does not create an attorney-client relationship.

Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330

Email:

Case Details

Date:

  • 09/28/2018

Send Information

If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.