Murray, Frank & Sailer LLP Announces Investigation of Securities Fraud Claims Against HQ Sustainable Maritime Industries, Inc.
NEW YORK - (BUSINESS WIRE) - MURRAY, FRANK & SAILER LLP announces that a complaint has been filed alleging securities fraud claims against HQ Sustainable Maritime Industries, Inc. ("HQ Maritime" or the "Company") (AMEX: HQS) and certain of its officers, on behalf of purchasers of HQ Maritime securities between May 11, 2009 and April 1, 2011, inclusive (the "Class Period").
The lawsuit concerns violations of the Securities Exchange Act of 1934 (the "Exchange Act") that occurred when the Defendants issued materially false and misleading statements or omitted to state material information during the Class Period regarding HQ Maritime's financial performance, business prospects, and internal controls.
Specifically, it is alleged that during the Class Period, the Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company's revenues had been overstated; (2) the Company's financial statements did not conform with Generally Accepted Accounting Principles and were materially false and misleading; (3) the Company was operating with material deficiencies in its internal controls over its financial reporting; (4) the Company's financial statements were materially false and misleading. Further, it is alleged that as a result of the Defendants' misstatements, HQ Maritime's stock traded at artificially inflated prices throughout the Class Period.
On March 16, 2011, HQ Maritime announced that it would be postponing the filing of its annual report on Form 10-K until April 1, 2011. On April 1, the Company revealed that it was noncompliant with federal laws as well as AMEX listing standards, resulting in a suspension of trading in the Company's shares on the AMEX. This information resulting in a closing price of $2.78 at the time of the suspension of trading for a decline of 23%. Subsequently, on April 6, 2011, Andrew Intrader, Chairman of the Company's audit committee of the board of directors abruptly resigned, disclosing that HQ Maritime's CEO had blocked the Company's independent auditors from reviewing data necessary to audit sales and revenues.
If you purchased HQ Maritime securities within the Class Period, and you wish to discuss the litigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
MURRAY, FRANK & SAILER LLP