NEW YORK, April 4, 2012 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a securities class action has been commenced in the United States District Court for the Southern District of Texas on behalf of purchasers (the "Class") of Hyperdynamics Corporation ("Hyperdynamics" or the "Company") (NYSE: HDY) publicly traded securities during the period between February 17, 2011 and February 15, 2012 (the "Class Period").
The complaint charges Hyperdynamics and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Hyperdynamics is an independent oil and gas exploration company engaged in the development of prospects offshore of the Republic of Guinea (" Guinea") in West Africa.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. As a result of defendants' false statements, Hyperdynamics stock traded at artificially inflated prices during the Class Period, reaching a high of $6.35 per share on March 4, 2011.On November 9, 2011, Hyperdynamics announced disappointing first quarter 2012 financial results and reported that it had increased the cost estimate for its first two exploration wells (the Sabu-1 and Baraka-1 wells) from $80 to $135 million due to an increased investment in its well logging program, infrastructure bottlenecks and operational issues with its drill ship. The Company further announced that there were delays in the progress of its Sabu-1 well and that given the operational challenges with Sabu-1, it might delay its plans for drilling its Baraka-1 well. Then, on February 15, 2012, Hyperdynamics announced extremely disappointing results from its Sabu-1 exploration well, reporting that the Sabu-1 well was unsuccessful, as the Company only encountered non-commercial quantities of oil from its exploration activities. On this news, the price of Hyperdynamics stock fell, closing at $1.44 per share on February 16, 2012, a one-day decline of 29% and a decline of 77% from its Class Period high. According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) due to numerous cost overruns and delays, including logistical delays resulting from limited port facilities in Guinea as well as issues related to mechanical and operational matters surrounding the drilling of the Sabu-1 well, the Company would be unable to commence drilling on the Baraka-1 well; (b) the Company had far greater exposure to liquidity concerns than it had previously disclosed; and (c) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company's drilling operations or the prospective value of the Company's oil and gas concessions. Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired Hyperdynamics securities during the Class Period. If you purchased or otherwise acquired Hyperdynamics securities during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than June 4, 2012. A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.