Levi & Korsinsky, LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired MGT Capital Investments Inc. (OTCMKTS: MGTI) securities.
If you suffered a loss on your investment and would like to explore a potential recovery under the federal securities laws, submit to us or contact Joseph E. Levi, Esq. via email at [email protected] or call 212-363-7500 to speak to our team of experienced shareholder advocates.
THE LAWSUIT: Oct 09 2015 - Sep 07 2018
CASE DETAILS:
(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.
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