SAN DIEGO and HOUSTON, April 2, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether officers and directors of Harvest Natural Resources, Inc. (NYSE: HNR) breached their fiduciary duties to shareholders.
Robbins Arroyo LLP Investigates Potential Accounting Errors and Misstated Financial Results in Harvest Natural's Previously Filed Financial Statements for 2010, 2011, and 2012Robbins Arroyo LLP is investigating whether Harvest Natural's financial reporting for fiscal years 2010, 2011, and 2012 was false and misleading. On March 18, 2013, Harvest Natural, an independent energy company, engaged in the acquisition, exploration, development, production, and disposition of oil and natural gas properties, reported that it would be unable to timely file its Annual Report for the fiscal year ended December 31, 2012. During the preparation of the company's financial statements, Harvest Natural identified errors that require the company to revise and possibly restate its financial statements for certain periods in 2010, 2011, and 2012. Further, Harvest Natural disclosed that, because of its liquidity position, its auditors would include a "going concern qualification" in their opinion. On this news, Harvest Natural's stock declined 33%, to close at $3.70 per share on March 19, 2013. Robbins Arroyo LLP Investigates Failed Internal Controls and Potential Improper Public Statements by Harvest Natural's Officers and Directors In addition to investigating the potentially false and misleading statements, Robbins Arroyo LLP is also reviewing whether certain of Harvest Natural's officers and directors failed to implement adequate internal controls to ensure proper accounting. Specifically, Robbins Arroyo LLP is investigating whether these fiduciaries instituted or permitted inadequate internal controls that allowed the company to make improper statements concerning its: (i) capitalization of certain lease maintenance costs; (ii) capitalization of certain internal selling, general, and administrative costs; and (iii) the presentation of cash flow items and certain long-lived assets.