The law firm of Wohl & Fruchter LLP is investigating possible violations of federal securities laws by officers and directors of Hyperdynamics Corporation (Hyperdynamics) (NYSE:HDY). In 2006, Hyperdynamics entered into an agreement with the government of Guinea under which it acquired an offshore oil and gas concession (Concession). On December 31, 2012, Hyperdynamics sold a 40% interest in the Concession to Tullow Oil (Tullow). Pursuant to the sale, among other things, Tullow paid $27 million to Hyperdynamics for reimbursement of past costs, and agreed to pay Hyperdynamics’ pro rata share of future drilling costs for an exploration and appraisal well up to $100 million. On April 1, 2013, Tullow became the operator of the Concession. On September 30, 2013, Hyperdynamics announced it had received a subpoena from the United States Department of Justice (DOJ) requesting that Hyperdynamics produce documents relating to its business in Guinea. The announcement stated that the DOJ is investigating whether Hyperdynamics’ activities in obtaining the Concession violated the U.S. Foreign Corrupt Practices Act or U.S. anti-money laundering statutes. On October 1, 2013, Reuters quoted Hyperdynamics’ Chief Executive Officer, Ray Leonard, as stating that the DOJ probe likely won't affect Hyperdynamics’ ability to explore the Concession. In its Form 10-Q for the quarter ended December 31, 2013, filed on February 7, 2014, Hyperdynamics disclosed that, in January 2014, it received a subpoena from the Securities and Exchange Commission (SEC) relating to its acquisition of the Concession. On March 12, 2014, Tullow announced that the DOJ and SEC investigations constituted a “force majeure” under its agreement with Hyperdynamics, thereby allowing Tullow to suspend plans to start drilling a deepwater well at the Concession on April 1, 2014. According to Tullow, it “cannot proceed with its activities on the [Concession] until these [regulatory] issues are resolved.” Upon the news of Tullow’s suspension of its drilling plans in the Concession, HDY stock dropped over 58% in trading on March 12, 2014.
Persons with relevant information, and HDY shareholders with questions about this investigation, are invited to contact the attorney below, or our Firm by calling 866.833.6245.Additional information is available on our website at: http://www.wohlfruchter.com/cases/hdy. About Wohl & Fruchter Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners. This release may be deemed to constitute attorney advertising.