Kantrowitz, Goldhamer & Graifman, P.C. Files Class Action Lawsuit on Behalf of Investors of Houston American Energy Corp.
NEW YORK, May 7, 2012 /PRNewswire/ -- Kantrowitz, Goldhamer & Graifman, P.C. has filed a federal securities class action in the United States District Court, Southern District of Texas, on behalf of a plaintiff who suffered substantial financial loss and all persons who purchased securities of Houston American Energy Corp. ("Houston American" or the "Company") (Amex: HUSA) 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.
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.
On March 1, 2012, shortly after the Company reaffirmed the Well's commercial viability, the truth began to emerge with the Company announcing that the Well would be temporarily plugged while further testimony was ongoing. 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 been investigating the Company since 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.
If you are a shareholder who purchased Houston American securities during the Class Period, you have until June 26, 2012 to ask the Court to appoint you as Lead Plaintiff for the class. If you wish to discuss your rights as a shareholder, or have any questions concerning this notice, please contact: Gary S. Graifman, Esq., at Kantrowitz, Goldhamer & Graifman, P.C., toll-free at 800-660-7843 or via email at email@example.com or by writing to Kantrowitz, Goldhamer & Graifman, P.C., 747 Chestnut Ridge Road, Suite 200, Chestnut Ridge, New York 10977. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. Kantrowitz, Goldhamer & Graifman is a firm with substantial experience and expertise in securities class actions.
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