Alleged False Results Bring Lawsuit against Höegh LNG

Norwegian owner and operator of floating LNG import terminals Höegh LNG Partners LP is under investigation related to possible violations of federal securities laws in connection with false and/or misleading financial statements released by the company.

According to Law Offices of Howard G. Smith, a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of a class of purchasers of the securities of Höegh LNG between March 5, 2015 and November 3, 2015.

“The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company understated its tax liability,” the law firm said.

The complaint alleges that throughout this period the company made false and misleading statements and failed to disclose material information, with respect to the accounting for its quarterly income tax provisions.

On November 11, 2015, the company said that the previously reported financial statements for the years ended December 31, 2014 and 2013, each quarter within the year ended December 31, 2014, the quarter ended December 31, 2013 and the quarter ended March 31, 2015, needed to be restated and “should not be relied upon.”

Following the lawsuit, on November 4, the company shares fell by USD 1.73 per share, over 22%, the Law Offices said.

In a separate announcement Goldberg Law PC said that it was also investigating whether Höegh and its officers violated securities laws by issuing misleading information to investors.

The investigation concerns whether the company violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

World Maritime News