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).
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.
Request more information now by clicking here: www.faruqilaw.com/HUSA
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 firstname.lastname@example.org or email@example.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.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential matter.
FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP