19.  MGT and its subsidiaries were historically engaged in the business of acquiring,  developing, and monetizing assets in the online and mobile gaming space as well as the social  casino industry.  Materially False and Misleading  Statements Issued During the Class Period   35.  Plaintiff brings this action as a class action pursuant to Federal Rule of Civil  Procedure 23(a) and (b)(3) on behalf of a class, consisting of all persons and entities that  acquired MGT’s securities between May 9, 2016, and September 20, 2016, inclusive, and who  were damaged thereby (the “Class”).  Excluded from the Class are Defendants, the officers and  directors of the Company, at all relevant times, members of their immediate families and their  legal representatives, heirs, successors, or assigns, and any entity in which Defendants have or  had a controlling interest.   46.  As alleged herein, Defendants acted with scienter since Defendants knew that the  public documents and statements issued or disseminated in the name of the Company were  materially false and/or misleading; knew that such statements or documents would be issued or  disseminated to the investing public; and knowingly and substantially participated or acquiesced  in the issuance or dissemination of such statements or documents as primary violations of the  federal securities laws.  As set forth elsewhere herein in detail, Ladd, by virtue of his receipt of  information reflecting the true facts regarding MGT, his control over, and/or receipt and/or  modification of MGT’s allegedly materially misleading misstatements and/or their associations  with the Company which made him privy to confidential proprietary information concerning  MGT, participated in the fraudulent scheme alleged herein.   53.  Plaintiff repeats and realleges each and every allegation contained above as if  fully set forth herein.    54.  During the Class Period, Defendants carried out a plan, scheme and course of  conduct which was intended to and, throughout the Class Period, did: (i) deceive the investing  public, including Plaintiff and other Class members, as alleged herein; and (ii) cause Plaintiff and  other members of the Class to purchase MGT’s securities at artificially inflated prices.  In  furtherance of this unlawful scheme, plan and course of conduct, Defendants, and each  defendant, took the actions set forth herein.   55.  Defendants (i) employed devices, schemes, and artifices to defraud; (ii) made  untrue statements of material fact and/or omitted to state material facts necessary to make the  statements not misleading; and (iii) engaged in acts, practices, and a course of business which  operated as a fraud and deceit upon the purchasers of the Company’s securities in an effort to  maintain artificially high market prices for MGT’s securities in violation of Section 10(b) of the  Exchange Act and Rule 10b-5.  All Defendants are sued either as primary participants in the  wrongful and illegal conduct charged herein or as controlling persons as alleged below.     56.  Defendants, individually and in concert, directly and indirectly, by the use, means  or instrumentalities of interstate commerce and/or of the mails, engaged and participated in a  continuous course of conduct to conceal adverse material information about MGT’s financial  well-being and prospects, as specified herein.     64.  Plaintiff repeats and realleges each and every allegation contained above as if  fully set forth herein.    Background   Violation of Section 10(b) of The Exchange Act and   Rule 10b-5 Promulgated Thereunder   Against All Defendants   Violation of Section 20(a) of The Exchange Act   Against Defendant Ladd  