BOSTON, March 19, 2013 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible securities law violations by Harvest Natural Resources, Inc. ("HNR" or the "Company") (NYSE: HNR) following the Company's announcement that its auditors had uncovered a "going concern qualification." HNR also revealed that it had identified material weaknesses in its accounting practices, and that it would likely restate its financial results for fiscal years 2010, 2011, and 2012. The Company has also announced that it will delay filing its 2012 annual report. These revelations affect investors who purchased HNR securities between May 5, 2010, and March 19, 2013 (the "Class Period"), and may affect earlier investors as the Company releases additional information about its need to restate its previously filed financial results.
News of the accounting irregularities shocked the market, and the Company's stock price fell by more than 30% in a single day – dropping from $5.49 per share on March 18, 2013, to close at $3.70 per share on March 19, 2013, hitting a four year low.
Harvest suffered a loss of $9.6 million, or 26 cents a share, for 2012, compared with net income of $51.8 million, or $1.32, a year earlier. Harvest was expected to report profit of $22 million, the average of two analysts' estimates compiled by Bloomberg. Bloomberg also reported on March 19, 2013 that HNR found an error in its cash flow results and determined that certain assets have been impaired. The Company's management concluded that there were errors in calculations surrounding and accounting for certain leases and internal costs.
Block & Leviton's investigation seeks to determine, among other things, whether HNR or its officers and directors have violated the federal securities laws. If you purchased HNR stock during the Class Period and have any information relevant to this investigation, or have questions about your legal rights, please contact attorney Steven Harte of Block & Leviton LLP at (617) 398-5600 or email him at Steven@blockesq.com.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.
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SOURCE Block & Leviton LLP