Stull, Stull & Brody Files Class Action Lawsuit on Behalf of Investors in Houston American Energy Corp.
Published on Monday, 07 May 2012 13:21 Written by TradersHuddle StaffNEW YORK-( Business Wire )-
Stull, Stull & Brody has filed a federal securities class action (the “Complaint”) in the United States District Court, Southern District of Texas, on behalf of a plaintiff who suffered substantial financial losses and all persons who purchased Houston American Energy Corp. (“Houston American” or the “Company”) (Amex: HUSA) securities between October 5, 2010 and April 19, 2012, inclusive (the "Class Period"). This class action is brought under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company and certain of its officers and directors.
Houston American is an oil and gas exploration and production company. The Company’s activities are focused on properties in the U.S. onshore Gulf Coast Region, principally Texas and Louisiana, and on the development of concessions in the South American country of Colombia. Stull, Stull & Brody is a nationally recognized law firm with substantial experience and expertise in securities class actions.
The Complaint alleges the Company made materially false and misleading statements regarding the commercial viability of its Tamandua #1 oil and gas well (the “Well”) located in Columbia, South America and omitted material information about an informal investigation launched as early as October 2010 by the Securities & Exchange Commission (“SEC”) regarding potential violations of the federal securities laws. These materially false and misleading statements artificially inflated the Company’s stock prices. Plaintiff, and it is believed members of the Class, would not have purchased the Company’s shares at the prices they did had they known of the impending SEC investigation or inquiry. On March 1, 2012, shortly after the Company reaffirmed the Well’s commercial viability, the truth regarding the Well began to emerge with the Company announcing that it would plug the well. This caused a 35 percent decline in the Company’s stock, the biggest drop the Company’s stock has seen in more than a decade. Then finally on April 19, 2012, after Houston American forestalled acknowledging definitively that the Tamandua #1 well would be capped by making falsely positive statements for a month and a half, the Company not only acknowledged that it would, in fact, abandon the Tamandua well, but that the SEC had launched an inquiry into the Company as early as October, 2010 and had issued subpoenas for further information. In reaction to this news Houston American’s stock fell another 36% to $2.25 per share, resulting in a decline of the Company’s share price of approximately 71% since the beginning of the year.
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