Houston American Energy Corporation : Glancy Binkow & Goldberg LLP Announces Investigation of Houston American Energy Corporation
05/07/2012| 05:45pm US/Eastern
Glancy Binkow & Goldberg LLP announces that it is investigating
potential claims against the board of directors of Houston American
Energy Corp. ("Houston American" or the "Company") (NYSE AMEX: HUSA),
concerning whether the board has breached its fiduciary duties to
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 are a shareholder of Houston American, if you have information or
would like to learn more about these claims, or if you wish to discuss
these matters or have any questions concerning this announcement or your
rights or interests with respect to these matters, please contact Louis
Boyarsky, Esquire, Glancy Binkow & Goldberg LLP, 1925 Century Park East,
Suite 2100, Los Angeles, CA 90067, by telephone at (310) 201-9150 or
Toll Free at (888) 773-9224 or by email to firstname.lastname@example.org.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
Glancy Binkow & Goldberg LLP
Louis Boyarsky, Esquire
201-9150 or Toll Free (888) 773-9224
© Business Wire 2012