SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that a class action lawsuit has been brought on behalf of purchasers of the securities of Houston American Energy Corp. (“Houston American” or the “Company”) (NYSE Amex:HUSA) between March 29, 2010 and April 18, 2012 (“Class Period”).
If you purchased Houston American securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than June 26, 2012. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Houston American shareholders who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon Lee of Lieff Cabraser toll free at (800) 541-7358.
The action is brought against Houston American and certain of its officers and directors for violations of the Securities Exchange Act of 1934. Houston American, based in Houston, Texas, explores for and produces natural oil and gas in the United States and South America.
The complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Houston American’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose that the continued investment in testing and completing two formations named C7 and C9 in its Tamandua #1 well in Colombia was unproductive and not commercially viable, and that the Company lacked adequate internal and financial controls.
On March 1, 2012, Houston American announced delays in drilling the Tamandua #1 well and that results of further evaluation of the well’s C7 and C9 formations would be announced as soon as they are available. On this news, Houston American stock fell $3.84 per share, or more than 35%, to close at $7.00 per share on March 1, 2012.
Then, on April 19, 2012, the Company announced that it had ceased its “efforts to test and complete the C7 and C9 formations in the Tamandua #1 sidetrack well…due to formation damage while drilling.” The Company also disclosed that the Securities and Exchange Commission (“SEC”) is conducting a non-public formal investigation “to determine whether there have been any violations of the federal securities laws.” Houston American revealed that it had received three SEC subpoenas in connection with an investigation that commenced in October 2010. The subpoenas call “for the testimony of the Company’s chief executive officer and chief financial officer and the delivery of certain documents.” In response to these revelations, Houston American shares declined $1.24, or over 35.5%, to close at $2.25 on April 19, 2012.
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last nine consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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