Rigrodsky & Long, P.A. Announces Class Action Lawsuit Against Magnum d’Or Resources, Inc.
July 29 2011 - 6:13PM
Business Wire
Rigrodsky & Long, P.A. announces that a class action lawsuit
has been filed in the United States District Court for the Southern
District of Florida on behalf of all persons or entities who
purchased or otherwise acquired the stock of Magnum d’Or Resources,
Inc. (“Magnum” or the “Company”) (Other OTC: MDOR.PK) between July
2, 2008 and April 13, 2010, inclusive (the “Class Period”),
alleging violations of the Securities Exchange Act of 1934 (the
“Complaint”).
If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
Timothy J. MacFall, Esquire or Noah R. Wortman, Case Development
Director of Rigrodsky & Long, P.A., 919 North Market Street,
Suite 980 Wilmington, Delaware, 19801 at (888) 969-4242, by e-mail
to info@rigrodskylong.com, or via our website:
http://www.rigrodskylong.com/news/MagnumdOrResources-MDOR.
The Complaint names Magnum and one of the Company’s directors as
defendants. According to its website, the Company was established
to deal with the problem of waste tires in a manner that is
environmentally friendly and profitable. It aims to create a closed
loop with rubber compounds enabling it to be used as a raw material
repeatedly without compromising the quantity or properties of the
compounds.
The Complaint alleges that during the Class Period, Magnum made
false statements to the marketplace about its growth and
operations. Specifically, the Company falsely told investors, among
other things, that it had $130 million in contracts for its
products, and had secured $15 million in financing. The Company
also failed to disclose the existence of an SEC Formal Order of
Investigation into the Company – a fact Magnum appears to have
hidden not only from investors but its own outside auditors, as
well.
Moreover, Magnum issued millions of shares of its stock as
compensation to several so-called “consultants,” who then sold the
shares in foreign brokerage accounts, kept some of the cash
proceeds for themselves, and funneled the rest -- some $7 million
-- back to Magnum, under sham “loan” agreements. In April 2010,
when Magnum finally told its auditor, Weinberg & Company, P.A.,
about the SEC’s formal investigation, the auditor withdrew its
prior audit opinions for 2008 and 2009. Magnum’s stock price
plummeted on the news. The SEC formally charged Magnum and its
former CEO Joseph Glusic (“Glusic”). Glusic has since resigned from
Magnum and has settled with the SEC.
If you wish to serve as lead plaintiff, you must move the Court
no later than September 16, 2011. A lead plaintiff is a
representative party acting on behalf of other class members in
directing the litigation. In order to be appointed lead plaintiff,
the Court must determine that the class member’s claim is typical
of the claims of other class members, and that the class member
will adequately represent the class. Your ability to share in any
recovery is not, however, affected by the decision whether or not
to serve as a lead plaintiff. Any member of the proposed class may
move the court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent class
member.
While Rigrodsky & Long, P.A. did not file the Complaint in
this matter, the firm, with offices in Wilmington, Delaware and
Garden City, New York, regularly litigates securities class,
derivative and direct actions, shareholder rights litigation and
corporate governance litigation, including claims for breach of
fiduciary duty and proxy violations in the Delaware Court of
Chancery and in state and federal courts throughout the United
States.
Attorney advertising. Prior results do not guarantee a similar
outcome.