NEW YORK, April 19, 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).
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.
Also on April 19, 2012, the Company confirmed that it is under investigation from the Securities and Exchange Commission ("SEC") for potential violations of the federal securities laws. Pursuant to the investigation, the Company received three subpoenas issued by the SEC in February and April of 2012. 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 as part of a formal order of private investigation issued by the SEC on March 1, 2011, which followed an informal inquiry commenced by the SEC in October 2010.
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 [email protected] or [email protected]. 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. [email protected] Francis McConville, Esq. [email protected] Telephone: (877) 247-4292 or (212) 983-9330