Levi & Korsinsky, LLP announces the commencement of a class action lawsuit in the USDC for the Southern District of New York on behalf of shareholders of MGT Capital Investments, Inc. (“MGT” or the “Company”) (NYSE MKT: MGT) who purchased shares between May 9, 2016 and September 20, 2016.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (a) the Company was engaging in and/or had engaged in conduct that would result in an SEC investigation; (b) the SEC investigation and the underlying conduct would cause the New York Stock Exchange to refuse to list the Company’s 43.8 million shares required for the D-Vasive merger; and (c) as such, the D-Vasive merger would likely not be completed. On September 19, 2016, MGT announced that it had received a subpoena from the Securities and Exchange Commission requesting information from the Company. In addition, the Company announced that the New York Stock Exchange has refused to list the shares required to close MGT’s acquisition of D-Vasive Inc. Following this news, shares of MGT fell from a close of $2.52 the previous day to a close of $1.89 per share on September 20, 2016. If you suffered a loss in MGT Capital you have until November 21, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
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