SEATTLE--(BUSINESS WIRE)--Hagens Berman Sobol Shapiro LLP (“Hagens Berman”) (http://www.hbsslaw.com) today announced that a class-action lawsuit has been filed on behalf of purchasers of the common stock of HQ Sustainable Maritime Industries, Inc. (“HQS” or the “Company”) (AMEX:HQS).
The case was filed April 28, 2011 in the United States District Court for the Western District of Washington. It seeks to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).
The complaint alleges that HQS failed to disclose material adverse facts about the Company’s financial condition, including overstated company revenues, improperly formatted financial statements with false and misleading information and problems with its internal control of financial reporting. Specifically, the complaint alleges that:
- On March 16, 2011, the Company announced in a press release that it would postpone the filing of its annual report for fifteen calendar days, or until April 1, 2011. The Company disclosed that it “fully expected” to file by the April 1, 2011, deadline.
- After the close of the market on April 1, 2011, investors were shocked to discover that HQSM was still out of compliance with federal laws and AMEX listing standards, causing trading in the Company’s shares to be suspended by the AMEX. HQSM shares closed trading on April 1, 2011 at $2.78 per share. The Company’s shares were then suspended from further trading, and have not resumed trading since.
- To this date, the Company has still not filed its financial reports, is still out of compliance with federal law and AMEX regulations, and has never resumed trading.
- In a letter dated April 6, 2011, the Chairman of HQSM’s audit committee of the board of directors, Andrew Intrader, abruptly resigned, and disclosed some of the previously undisclosed problems that were going on behind the scenes at HQSM. Director Intrader noted how the CEO of the Company had blocked the Company’s independent auditors from reviewing data necessary to audit the reported sales and revenues of HQSM. As a result, Director Intrader felt “compelled by conscience” to resign his position as audit committee chairman and as a director of the Company.
“The company’s continued failure to file the required financial reports is troubling,” said Steve W. Berman, Hagens Berman’s Managing Partner. “It is unfortunate that shareholders have been left in the dark.”
If you wish to serve as lead plaintiff, and you purchased HQS common stock between May 11, 2009 and April 1, 2011, (“the Class Period”) you must move the Court by June 26, 2011. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Karl Barth of Hagens Berman at 206-623-7292, or via e-mail at HQS@hbsslaw.com. You can also join the case online at www.hbsslaw.com/HQSM. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Plaintiff seeks to recover damages on behalf of all purchasers of the common stock of HQS during the Class Period (the “Class”). The plaintiff is represented by Hagens Berman, which has extensive expertise in prosecuting securities fraud class actions.
Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and whistleblowers. More information about the firm is available at www.hbsslaw.com.