This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Faruqi & Faruqi, LLP Announces Investigation Of Hyperdynamics Corporation





NEW YORK, Feb. 16, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Hyperdynamics Corporation ("Hyperdynamics" or the "Company") (NYSE: HDY).

(Logo: http://photos.prnewswire.com/prnh/20120119/MM38856LOGO )

Hyperdynamics is an oil and gas exploration company operating in the Gulf of Guinea. On March 25, 2011, Hyperdynamics announced the public offering of 25,000,000 shares of the Company's common stock priced at $5.00 per share, for gross proceeds of $144,000,000. On July 8, 2011, Hyperdynamics announced that the Company would be listed on the New York Stock Exchange on or around July 11, 2011. Hyperdynamics' president and CEO Ray Leonard stated that the move was planned so as "to build shareholder value for the long term."

On September 7, 2011, CEO Ray Leonard made a series of optimistic statements regarding the Company's future prospects. Moreover, he elaborated on an earlier statement that "this will not end well for the short-sellers" by claiming that "short-sellers, to some extent, are betting against success of the Company. We are very confident in our program and in the prospectivity of this acreage. I guess you can put two and two together on that." In addition, the CEO acknowledged that there had been substantial insider buying in the $1 range, but that this had effectively ceased once the stock price had reached $4.

After hours on November 8, 2011, Hyperdynamics disclosed that its Q3 2011 net loss had increased to $4.38M, 52% above the prior year's losses, for a quarterly EPS of - $0.03. This exceeded analysts' expectations of a Q3 loss of - $0.02 EPS. Between market close on November 8, 2011 and market close on November 9, 2011, Hyperdynamics' share price fell by $1.33, or almost 25%, to $4.06.

On December 14, 2011, Hyperdynamics announced drilling delays on the Company's Sabu-1 well. The Company's share price closed at $2.16 on December 14, 2011 from opening at $3.07 on December 13, 2011 – a drop of almost 30%. Then, on January 30, 2012, the Company announced that it would raise $30 Million in a Registered Direct Offering. On this news, the Company's share price plunged by almost 23%.

On February 15, 2012, Hyperdynamics issued a press release announcing that the Company "Encounters Oil Shows in Sabu-1 Well Offshore Guinea-Conakry."  The announcement disclosed that "the indicated oil saturation 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." The Company's share price dropped almost 8% on intraday trading – before the disclosure – and plummeted by over 30% after hours. The Company is now trading at around $1.38, compared to $5.39 as recently as November 8, 2011.

Request more information now by clicking here:  www.faruqilaw.com/HDY

Take Action

If you purchased Hyperdynamics securities and would like to discuss your legal rights, visit www.faruqilaw.com/HDY.  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 rgonnello@faruqilaw.com or fmcconville@faruqilaw.com.  Faruqi & Faruqi, LLP also encourages anyone with information regarding Hyperdynamics' 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, LLP369 Lexington Avenue, 10th Floor New York, NY 10017Attn:  Richard Gonnello, Esq. rgonnello@faruqilaw.com Francis McConville, Esq. fmcconville@faruqilaw.comTelephone: (877) 247-4292 or (212) 983-9330

 

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs