According to the law firm press release, Houston American explores for and produces natural oil and gas in the United States and South America. On March 1, 2012, the Company announced delays in drilling its Tamandua #1 well and claimed that further analysis of the well’s C7 and C9 formations would be announced as soon as they were available. On this news, Houston American securities plummeted $3.84 per share or more than 35%, to close at $7.00 per share on March 1, 2012.
According to the Complaint, on April 19, 2012, the Company ceased “efforts to test and complete the C7 and C9 formations in the Tamandua #1 sidetrack well...due to formation damage while drilling.” The Company also disclosed that the SEC is conducting a non-public formal investigation “to determine whether there have been any violations of the federal securities laws.” Specifically, the Company received three SEC subpoenas in connection with an investigation that commenced in October 2010. The subpoenas call “for the testimony of the Company’s chief executive officer and chief financial officer and the delivery of certain documents.”
On these revelations, Houston American shares declined $1.24 or more than 35.5%, to close at $2.25 on April 19, 2012.
On September 20, 2012, the Court issued an Order consolidating cases, appointing lead plaintiff, and approving the selection of lead counsel.
On November 15, 2012, the Plaintiffs filed their consolidated class action complaint.
On December 14, 2012, the Court issued an Order of Partial Dismissal, dismissing without prejudice certain defendants.
On August 22, 2013, the Court issued an Order granting Defendants' motion to dismiss and dismissing this action. On September 11, 2013, the Plaintiffs appealed this decision.
On August 12, 2014, the Court of Appeals entered a Judgment reversing the decision of the District Court, and remanding this case for further proceedings.
On December 30, 2014, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on April 16, 2015. Final approval of the Settlement was granted on July 29 and this case was dismissed.