Robbins Umeda LLP Announces the Filing of a Class Action Suit Against Houston American Energy Corp.
Robbins Umeda LLP announces the filing of a federal securities class action by an investor in the U.S. District Court for the Southern District of Texas, on behalf of purchasers of Houston American Energy Corp. (NYSE: HUSA) (“Houston American” or the “Company”) shares between March 29, 2010 and April 18, 2012 (the “Class Period”).
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results related to its Tamandua #1 well, and the well’s C7 and C9 formations. In particular, the complaint alleges that defendants concealed the fact that: (i) the continued investment in testing and completing the C7 and C9 formations in Tamandua #1 well was unproductive and not commercially viable; (ii) the Company lacked adequate internal and financial controls; and (iii) as a result of the foregoing, the Company’s statements were materially false and misleading at all relevant times.
In particular, on March 1, 2012, the Company announced delays in drilling its Tamandua #1 well and claimed that further analysis of the well’s C7 and C9 formations would be announced as soon as they became available. As a result of this announcement, the price of Houston American’s stock fell $3.84 per share, or more than 35%, to close at $7.00 on March 1, 2012.
Then, on April 19, 2012, the Company ceased work on the C7 and C9 formations “due to formation damage while drilling.” The Company also disclosed that the SEC is conducting a non-public formal investigation “to determine whether there have been any violations of the federal securities laws.” In connection with the investigation, which commenced in October 2010, the Company received three SEC subpoenas that call “for the testimony of the Company’s chief executive officer and chief financial officer and the delivery of certain documents.” Following these revelations, the price of the Company’s stock dropped $1.24 per share, or 35%, to close at $2.25 per share on April 19, 2012.
If you purchased or otherwise acquired Houston American stock during the Class Period and wish to serve as lead plaintiff, you must move the Court no later than June 26, 2012. To discuss your shareholder rights, please contact attorney Gregory E. Del Gaizo at 800-350-6003, via email at email@example.com, or via the shareholder information form.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.