Höegh LNG Partners LP (HMLP) Misled the Investing Public Regarding its Business Prospects
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Höegh LNG Partners LP (the “Partnership”) (NYSE: HMLP) securities between August 22, 2019 and July 27, 2021, for violations of the Securities Exchange Act of 1934.
Höegh LNG Holdings Ltd., a leading floating liquefied natural gas (“LNG”) service provider, formed the Partnership. The Partnership’s purported strategy is to own, operate, and acquire floating storage and regasification units (“RSFUs”) and associated LNG infrastructure assets under long-term charters. The Partnership had interests in five FSRUs, including the PGN FSRU Lampung based in Indonesia.
According to the complaint, during the relevant period, defendants failed to disclose that the Partnership was facing issues with the PGN FSRU Lampung charter and as a result, the PGN FSRU Lampung charterer would state it would commence arbitration to declare the charter null and void, and/or to terminate the charter, and/or seek damages. Further, the Partnership would need to find alternative refinancing for its PGN FSRU Lampung credit facility, which had matured in September 2021, not October 2021, as previously stated. Therefore, the Partnership would have to accept less favorable refinancing terms with regard to the PGN FSRU Lampung credit facility as Höegh LGN Holdings Ltd. could not extend the revolving credit line to the Partnership past its maturation date. As a result, the Partnership would essentially end distributions to common unit holders.
On July 27, 2021, the Partnership issued a press release announcing that its “Board of Directors has reduced the Partnership’s quarterly cash distribution to $0.01 per common unit, down from a distribution of $0.44 per common unit in the first quarter of 2021,” to “conserve its internally generated cash flows to resolve issues related to the ongoing refinancing of the PGN FSRU Lampung credit facility.” On this news, the Partnerships common unit price fell $11.57 per common unit, or 64%, to close at $6.30 per common unit on July 28, 2021. The stock now trades under $5.00.
If you purchased shares of Höegh LNG Partners LP (HMLP) between August 22, 2019 and July 27, 2021, you have until December 27, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.