NEW YORK, NY / ACCESSWIRE / October 21, 2016 / Pomerantz LLP announces that a class action lawsuit has been filed against MGT Capital Investments, Inc. ("MGT" or the "Company") (MGT) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 16-cv-07449, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired MGT securities between May 9, 2016 and September 20, 2016 both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased MGT securities during the Class Period, you have until November 21, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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MGT, together with its subsidiaries, purports to acquire, develop, and monetize assets in the online, mobile, and casino gaming space. The Company operates through two segments, Gaming and Intellectual Property.
On May 9, 2016, MGT announced that it had entered into a definitive asset purchase agreement to acquire certain assets and technology from D-Vasive Inc. ("D-Vasive"), a provider of anti-spy software (the “D-Vasive Transaction”). In conjunction with the transaction, MGT announced the proposed appointment of Defendant John McAfee ("McAfee") as the Company's Executive Chairman and Chief Executive Officer (“CEO”), and that the Company intended to change its corporate name to John McAfee Global Technologies, Inc. MGT further advised investors that "[m]ajor terms of the deal include the payment to D-Vasive Inc. stockholders of 23.8 million restricted shares of MGT stock and $300,000 in cash. The proposed share issuance is expected to amount to roughly 47% of the Company on a pro-forma diluted basis at closing."
On May 26, 2016, MGT announced that it had entered into a definitive asset purchase agreement to acquire certain technology and assets from Demonsaw LLC ("Demonsaw"), which the Company touted as "a provider of a secure and anonymous file sharing software platform." MGT further advised investors that "[m]ajor terms of the deal include the payment to Demonsaw LLC members of 20.0 million restricted shares of MGT common stock. The proposed share issuance is expected to amount to approximately 28% of the Company's common stock on a pro-forma fully diluted basis at closing, inclusive of shares of common stock to be issued in connection with the Company's previously announced transaction with D-Vasive, Inc." The Company and D-Vasive would subsequently arrange for D-Vasive to purchase Demonsaw in advance of the D-Vasive Transaction, "in order to simplify these transactions, and meet certain customary tax issues," so that MGT would acquire Demonsaw's assets as well as D-Vasive's via the D-Vasive Transaction.