Magnum d’Or accused of SEC violations

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Magnum d’Or accused of SEC violations
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Monday, August 1, 2011
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6 z5 V! h: e8 X. T( F! {1 xWilmington, DE - 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 between July 2, 2008 and April 13, 2010, inclusive, alleging violations of the Securities Exchange Act of 1934. 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.