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Houston American Energy Corp. Message Board

  • cropduster08 cropduster08 Aug 30, 2013 2:15 PM Flag

    Court dismisses shareholder lawsuit against HUSA on 08-22-13

    I guess now we know that there has been something going on over the past week and it has been about the class action shareholder lawsuit against HUSA. I was doing some additional research on the subject and stumbled upon the Stanford Law School Class Action Clearinghouse website and found the following:

    "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."

    I have not gotten confirmation on the above, but if Stanford is right, apparently HUSA is now out from under the legal burden of this lawsuit. Apparently the judge agreed that the case was without merit. There could be other reasons to dismiss, of course, like a request from the plaintiffs, for example. Maybe they are going to buy HUSA at this level and make their lost money back the right way. It could also be that there was some kind of settlement between the parties, but somehow I doubt it after reading the original complaint. HUSA didn't do anything wrong in the first place and the suit should have never been brought to the court.

    Anyway, have a good weekend HUSA shareholders.

    Cropduster

    Sentiment: Buy

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    • mitchell.putz@att.net mitchell.putz Sep 3, 2013 8:52 AM Flag

      Cropduster why was the lawsuit such a downward element in stock price and the dismissal didn't even make the headline news board? Say something is thought to be wrong and its front page news, prove that nothing was wrong in a court of law with facts and it doesn't even get published, go figure.

      Sentiment: Buy

      • 2 Replies to mitchell.putz
      • The stock will rise beginning tomorrow...strong buy

      • Mitchell, as you suggested, I have no doubt that the shareholder lawsuit contributed to the downward pressure on the share price from the time it was filed to the time it was dismissed a couple of weeks ago now. Plus, like you, I was somewhat surprised that the dismissal didn't make headlines someplace or even rate a press release of some kind. We probably still wouldn't know about it if the Princeton Law Class Action website hadn't run a short piece on it, unless, of course, we had checked the docket ourselves, which we weren't able to do without signing up for to some kind of subscription service. Anyway, we didn't even get much of a bounce out of it, other than the million or so shares that were traded a few days after the dismissal. Those in the know still get first crack at the trading, which is why we have to be invested before the action starts.

        All I can guess is that the dismissal was already baked into the current share price and that the SEC probe is still considered to be somewhat of an overhang by investors. As we discussed last week, I think the lawsuit dismissal is likely to go a long way in helping the SEC decide whether or not they should continue their probe, considering the fact that the area of interest looks to be just about the same, from what I can tell.

        Plus, I am now convinced that the share price is being held at its current level by either the market maker or maybe a hedgefund, with my take leaning toward the market maker. The share price has simply stayed right around 30 cents for too long for it to float at that level all by itself. My guess is that someone is buying as many cheap shares as possible without upsetting the share price with the intent to profit handsomely if and when HUSA starts to get the string of positive press releases that we are so sorely missing at the moment. But the above is just me reading between the lines and it is all conjecture.

        Good luck,

        Cropduster

        Sentiment: Buy

    • Just read page 85-90...it sums the whole thing up. I would have to think the SEC is reading this decision. I'm not sure how the SEC can find any violations after reading this. Now we need a new permit to drill and hopefully find a little bit of oil. I think the SEC will drop it now as well. I will say this..$50 million to side track a well wasn't the best use of funds..I hope their new operators are more well versed in drilling that SK was...SK had a bunch of new employees making big decisions on this well. These guys aren't perfect but I will say they have been down the whole lawsuit road before so I would have to imagine they knew what they were writing and releasing would have legal ramifications. I guess it's time to go back to the poker table for those 2 plaintiffs.

      • 1 Reply to bonetraill
      • Well said, bonetraill. I'll read the whole opinion and order when I get the chance, especially pages 85 to 90. I was thinking the same thing as you about the nonpublic SEC probe. Apparently it is about the CPO4 block also, according to what HUSA said. I think the shareholder suit was mostly motivated by the releasing of the information last year that the SEC had been conducting a probe for some time . Now that a judge has ruled that the shareholder lawsuit has no merit (as we suggested, by the way), I don't see how the SEC can find anything different, unless it is a targeted investigation by the SEC, kind of like what we now know the IRS was doing to certain groups. I really hope that is not the case.

        I just want to say to you and to anyone who reads this that I am very sorry for the money so many investors lost as a result of HUSA's terrible fall from $20 a share to where it is now. I want to be compassionate towards those folks, because I have been down that road myself and it is a very painful thing to experience. But HUSA has warned from the very beginning that their stock tends to be very volatile and that certainly proved to be the case over the last couple of years.

        Plus I tried very hard not to say anything negative about anyone involved in the case, even though the lawsuit certainly slandered HUSA's management and directors. So I apologize if I said anything about anyone else that they took offense to. My intent was not to harm anyone, but rather to take an objective look at what was happening and try to figure out what the judge was likely to do. Apparently we were right about this one.

        As you said the SK Energy partnership was a disaster. But it is water under the bridge and we still have a management team that has lots of good experience and has proven to be very capable in the past, aside from SK Energy, of course. But, you know what, without SK Energy us newbies to HUSA would not have been able to buy in at this level.

        Cropduster

        Sentiment: Buy

    • I just took a look at the first few pages of the judge's opinion and order. It is 90 pages long, was issued on 08-22-13, and looks to be an interesting read. I may read it when I have a couple of hours to kill. It is pdf and my computer takes forever to bring up the pages.

      Anyway, here is a quote from the 2nd page:

      "After carefully reviewing the Amended Complaint, the briefs, and the applicable law, although the adequacy of the pleading is a close question, for the reasons stated below the Court finds that Defendants’ motion to dismiss for failure to state a claim for which relief can be granted should be granted."

      Thank goodness the judge was on top of her game and did the right thing. Right over wrong. Pretty simple. Apparently it was all about the correctness of the motion to dismiss that HUSA filed in January and had nothing to do with the plaintiffs back off or coming to some kind of agreement.

      It may be time to buy some more shares.

      Cropduster

      Sentiment: Buy

 
HUSA
0.18+0.0100(+5.88%)Dec 26 3:59 PMEST

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