The Complaint alleges that GMX Resources violated the securities laws by issuing false financial statements to investors in the stock offerings on July 17, 2008, May 13, 2009 and October 22, 2009. On March 11, 2010, the company disclosed that its full year 2008 and quarterly 2009 financial statements were inaccurate and must be restated. The company also warned that investors could no longer rely on its financial statements. GMX subsequently restated its financial statements to correct for the method used to record full cost pool impairment charges and related deferred income taxes. As a result of the restatement, the company' net loss for fiscal year 2008 was $124.6 million as compared to the originally reported $81.7 million.
GMX Resources share price has declined substantially since the stock offerings and investors in the stock offerings have suffered significant damages.
