If you purchased the common stock of Houston American Energy Corp. (“HUSA”) during the period from November 10, 2009, through April 18, 2012, inclusive, “The Relevant Period”, you may be entitled to share in the Fair Fund
The plaintiff alleges that between November 2009 and April 2012, Houston American Energy Corp. failed to disclose important information to shareholders which negatively impacted the stock price and harmed investors. On April 23, 2015, the Commission issued two Orders settling previously instituted cease-and-desist proceedings against the Respondents stating that, between November 2009 and April 2010, Houston American, Terwilliger and their agents, promoted Houston American’s interest in a Colombian oil and gas production area known as “CPO-4 block.” Houston American and Terwilliger made a series of fraudulent statements and omissions that materially exaggerated CPO-4 block’s value to Houston American and downplayed any associated risks. In doing so, Houston American entered into an agreement with Undiscovered Equities, a marketing firm owned and operated by McKnight that specialized in small-cap stock promotion, to post on its website and distribute to its subscribers a series of promotion articles about Houston American and its investment in CPO-4 block. Undiscovered Equities disclosed that it was compensated by Houston American, but did not disclose the amount of compensation it received. As a result of this conduct, Houston American’s stock price increased from approximately $4.00 per share to $20.00 per share, and its market capitalization increased from less than $150 million to more than $600 million. As the truth about the CPO-4 block emerged, Houston American’s stock price plummeted.
On July 16, 2018, the Commission issued an order establishing a Fair Fund, so the civil money penalties paid could be distributed to investors harmed by the Respondents’ conduct described in the Orders (the “Fair Fund”) and set the administrator’s bond amount at $572,500. The Fair Fund Amount, as well as any accumulated interest and earnings, less Administrative Costs (the “Net Available Fair Fund”), will be distributed to eligible Preliminary Claimants pursuant to the Plan of Allocation that is described in the Notices.
You may have been identified as Preliminary Claimant as either “Class Action Authorized Claimant”, “Class Action Deficient Claimant”, “Late-Filed Class Action Claimant”, or an “Opted-Out Class Action Claimant” who purchased, acquired, or were gifted as compensation the Security during the Relevant Period.
Requirements for Each Claimant:
"Class Action Authorized Claimant":
"Class Action Deficient Claimant"
"Late-Filed Class Action Claimant"- Eligible
"Late-Filed Class Action Claimant"- Ineligible
"Opted-Out Class Action Claimant"
For Class Action Authorized Claimants and Eligible Late-Filed Class Action Claimants, no additional action is required, and payment will be distributed subject to the $10 minimum. Class Action Deficient Claimants and Opted Out Class Action Claimants must submit a proof of claim by October 19, 2022 in order to qualify for a payment. You may submit a claim via email to [email protected], or if you prefer, you may download a print copy of the claim form to fill out by hand. The form must be postmarked (if mailed) or received online no later than October 19, 2022.
The mailing address is:Houston American Energy Corp. Fair Fund
Full details of the case can be found in the Notice. We recommend reading it in its entirety. If you have any additional questions, please send an email to [email protected].