Houston American Energy Corporation (NYSEAMEX:HUSA) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
April 30, 2012 (Shareholders Foundation) -- An investor in NYSEAMEX:HUSA shares filed a lawsuit in the U.S. District Court, Southern District of Texas, against Houston American Energy over alleged Violations of Federal Securities Laws in connection with certain statements made by Houston American Energy Corporation.
According to the complaint the plaintiff alleges on behalf of all persons who purchased Houston American Energy Corporation (NYSEAMEX:HUSA) securities between March 29, 2010 and April 18, 2012, that Houston American Energy Corporation and certain of its top officials violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On March 1, 2012, Houston American Energy Corporation disclosed an update on drilling operations and on April 19, 2012 , Houston American Energy Corp (NYSE Amex: HUSA) announced that a determination has been made to cease efforts to test and complete the C7 and C9 formations in the Tamandua #1 sidetrack well. Houston American Energy said that despite favorable Logging-While-Drilling logs, cased-hole logs and mudlog shows, it was determined that continued investment in testing and completion is inadvisable at this time possibly due to formation damage while drilling.
The Company also confirmed that the Securities and Exchange Commission ("SEC") is conducting a non-public formal investigation into the Company. Pursuant to the investigation, in February and April of 2012, the Company received three subpoenas issued by the SEC. The subpoenas called for the testimony of the Company's chief executive officer and chief financial officer and the delivery of certain documents. The subpoenas were issued pursuant to a nonpublic formal order of private investigation issued by the SEC on March 1, 2011, which followed a nonpublic informal inquiry commenced by the SEC in October 2010. Although the Company cannot be certain of the scope of the investigation, the SEC is trying to determine whether there have been any violations of the federal securities laws.
AMEX:HUSA shares fell from $10.84 per share on February 29, 2012 to slightly above $2 per share on April 20, 2012.
NYSEAMEX:HUSA fell on April 25, 2012 to as low as 1.62 and closed on Friday, April 27, 2012 at $2.62 per share, substantially down from its current 52weekHigh of over $20 per share.