NEW YORK, May 25, 2012 /PRNewswire/ --Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Houston American Energy Corp. ("Houston American" or the "Company") (NYSE Amex: HUSA).
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The investigation focuses on whether the Company and its executives violated federal securities laws by failing 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.
On March 1, 2012, Houston American announced delays in drilling the Company's Tamandua #1 well and claimed further analysis of the well's C7 and C9 formations would be announced as soon as they were available. The Company's share price collapsed by roughly 36.2% as a result of the announced delay, opening on March 1 at $10.97 and closing at $7.00. On April 19, 2012, Houston American finally announced the termination of its efforts to test and complete the C7 and C9 formations in the Tamandua #1 well. On this disappointing news, Houston American's share price again plummeted, falling roughly 35.2% from a close of $3.49 on April 18, 2012 to a close of $2.26 on April 19, 2012.
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Take Action
If you purchased Houston American securities and would like to discuss your legal rights, visit www.faruqilaw.com/HUSA. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Houston American's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Francis McConville, Esq.
fmcconville@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
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