GMX Resources Inc. (NASDAQ: GMXR)
MURRAY, FRANK & SAILER LLP is investigating securities fraud claims against GMX Resources Inc. ("GMX" or the "Company") (NASDAQ: GMXR) and certain of its officers, on behalf of purchasers of GMX common stock pursuant or traceable to the Company's stock offerings on or about July 17, 2008, May 12, 2009, and October 22, 2009 (the "Offerings").
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The investigation concerns violations of the Securities Act of 1933 (the "Securities Act") that occurred when it is alleged that Defendants issued materially untrue statements in the offering materials for each of the Offerings (the "Offering Materials").
On March 11, 2010, GMX issued a press release, announcing the restatement of the Company's financial statements for the year ended 2008 and the first three quarters of 2009. As a result of the restatements, the Company's restated net loss for the year ended December 31, 2008 was $124.6 million as compared to the originally reported $81.7 million. In addition, the press release stated that based on the errors in the 2008 year-end and 2009 quarterly financial statements, the Company's Audit Committee concluded on March 10, 2010 that such financial statements should no longer be relied upon. In response to this news, GMX's stock price dropped more than $0.70 per share, from a close of $10.29 per share on March 11, 2010, to a close of $9.59 per share on March 12, 2010.
Specifically, we are investigating whether Defendants made untrue statements and material omissions by failing to disclose in the Offering Materials that, for the year ended 2008 and the first three quarters of 2009 (the "Relevant Period"): GMX (1) failed to account properly for full cost pool impairment and other impairment charges; (2) failed to account properly for deferred income taxes; (3) failed to prepare its financial statements in accordance with Generally Accepted Accounting Principles (GAAP); and (4) had inadequate internal financial controls and systems. As a result of the foregoing, it has been alleged that during the Relevant Period, GMX's financial statements contained untrue statements and material omissions.
If you purchased GMX common stock pursuant to the Offerings and wish to discuss this litigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
MURRAY, FRANK & SAILER LLP