Harwood Feffer LLP Announces Investigation of Houston American Energy Corp.
NEW YORK, May 7, 2012 /PRNewswire/ — Harwood Feffer LLP (www.hfesq.com) is investigating potential claims against the board of directors of Houston American Energy Corp. (“Houston American” or the “Company”) (AMEX: HUSA), concerning whether the board has breached its fiduciary duties to shareholders.
On April 27, 2012, a securities class action was filed in the United States District Court for the Southern District of Texas, Case No. 12-cv-01332, against the Company alleging that Houston American failed to sufficiently disclose problems with its Tamandua #1 well, and the well’s C7 and C9 formations. Specifically, 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.
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. Following 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.
Our investigation concerns whether the Houston American board of directors has breached its fiduciary duties to shareholders, grossly mismanaged the Company, and/or committed abuses of control in connection with the foregoing.
If you own Houston American shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
Benjamin Sachs-Michaels, Esq. Robert I. Harwood, Esq. Harwood Feffer LLP 488 Madison Avenue New York, New York 10022 Phone Numbers: (877) 935-7400 (212) 935-7400 Email: firstname.lastname@example.org Website: http://www.hfesq.com
Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.
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