Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in MGT Capital Investments (OTC:MGTI) in connection to alleged violations of securities laws by MGTI. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in MGT Capital Investments between October 9, 2015 and September 7, 2018.
The class action complaint specifically alleges that during the period in question, MGTI might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that the company participated in a pump-and-dump scheme designed to artificially increase the value of its stock; that as a result of this scheme, the company made false and misleading statements that led to regulatory attention; that certain individuals implicated in the pump-and-dump scheme had control of the company and its managers; that the scheme would eventually lead to the company’s stock being delisted from the New York Stock Exchange MKT; and that consequently the company’s statements about its business, operations and prospects during the relevant period were false and misleading. In September 2016, MGTI revealed its receipt of an SEC subpoena requesting information about the company; this led to the broader revelation that MGT Capital Investments had been part of a pump-and-dump scheme. On September 7, 2018 the SEC disclosed that it had filed a complaint against the scheme’s alleged perpetrators, including MGT’s involvement. After the SEC announced its charges, MGT’s stock declined more than 90%, closing at $0.395/share on September 20, 2018. The complaint alleges that when true facts emerged, investors suffered losses.
According to the company’s website, MGT Capital Investments is involved in Bitcoin mining, which it describes as “when miners purchase powerful computing chips designed solely to solve the blocks which reward Bitcoins.” It trades over the counter under the symbol MGTI.