Branham Law Group Investigating HyperDynamics Corporation
March 15 2012 - 1:22PM
Business Wire
Branham Law Group, LLP, a firm representing
shareholders, is investigating HyperDynamics Corporation
(NYSE: HDY) to determine whether actions of the
officers or directors at HyperDynamics resulted in materially false
and misleading statements to investors. The
investigation also seeks to determine if those statements were
intended to deceive the market and artificially increase the
company's stock price. Concerned shareholders who would like more
information about their rights and potential remedies can contact
attorney Trey Branham at (855) 722-5910
or
tbranham@branhamlawgroup.com.
Branham Law Group, LLP’s investigation is focusing on
allegations that Ray Leonard, HyperDynamics’ Chief Executive
Officer, along with other senior executives at HyperDynamics, made
misleading statements regarding the prospective value of the
company's oil and gas concessions in Northwest Africa. During a
September 2011 conference call, Mr. Leonard discussed Guinea Coast
operations, informing investors that, "We are very confident in our
program and in the prospectively of this acreage. I guess you can
put two and two together on that." Unfortunately, just over
a month later, on November 8, 2011, HyperDynamics
disclosed financial results for 2011’s third quarter unveiling an
increase in the Company’s net loss to $4.38 million for the
quarter. This loss was 52% above the prior year's
losses during the same period. After this disclosure shares of
HyperDynamics fell by $1.33. This translates to a loss
of almost 25% of their value and closed at $4.06 on November 9,
2011.
Then on February 15, 2012, HyperDynamics revealed that
exploratory operations "indicated oil saturation [at the well]
appears to be residual, suggesting that larger volumes of oil
formerly were present in the reservoirs but subsequently leaked out
or that these rocks lay on a hydrocarbon migration pathway."
This disclosure came after the market's normal trading hours.
The next day the company’s shares opened at $1.12 per share, down
over 30%.
Damaged HyperDynamics shareholders have the option of
filing a class action lawsuit to recover damages incurred as a
result of disclosures.
The Branham Law Group, LLP has extensive experience in
securities and commercial litigation and handled claims of investor
fraud, partnership oppression, shareholder derivative suits, and
class actions of all types. The Branham Law Group also advises
whistleblowers on appropriate courses of actions.