Houston American Energy Corp.
Class Period: Mar 29, 2010 to Apr 18, 2012
Lead Plaintiff Deadline: Jun 26, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against Houston American Energy Corp. ("Houston American" or the "Company") on behalf of a class consisting of all persons other than defendants who purchased Houston American securities between March 29, 2010 and April 18, 2012. This case has been filed in the USDC - Southern District of Texas.
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 were available.
On this news, Houston American securities plummeted $3.84 per share or more than 35%, to close at $7.00 per share on March 1, 2012.
On April 19, 2012, the Company ceased "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 SEC is conducting a non-public formal investigation "to determine whether there have been any violations of the federal securities laws." Specifically, the Company 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."
On these revelations, Houston American shares declined $1.24 or more than 35.5%, to close at $2.25 on April 19, 2012.
Throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the continued investment in testing and completing the C7 and C9 formations in Tamandua #1 well was unproductive and not commercially viable; (2) the Company lacked adequate internal and financial controls; and (3) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
As a result of Defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's securities, Plaintiff and other Class members have suffered significant losses and damages.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.