LOS ANGELES, Jan. 26, 2007 (PRIME NEWSWIRE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the District of Louisiana on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Hornbeck Offshore Services, Inc. ("Hornbeck Offshore" or the "Company") (NYSE:HOS) between November 1, 2006 and January 10, 2007, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Hornbeck Offshore and the Company's chief executive officer with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning Hornbeck Offshore's operations and prospects caused the Company's stock price to become artificially inflated, inflicting damages on investors. Hornbeck Offshore, through its subsidiaries, provides offshore supply vessels for the offshore oil and gas industry, primarily in the United States Gulf of Mexico and internationally. The Complaint alleges that during the Class Period defendants, among other things, knew or recklessly disregarded but failed to disclose that operating issues had negatively impacted the Company's financial performance, including volatility in the offshore vessel day-rate, a lag in the shipyard delivery schedules for new-builds and increased turnaround time for regulatory dry-dockings, repairs and maintenance, as well as increased costs for personnel and insurance.
On November 1, 2006, Hornbeck Offshore reaffirmed its guidance for fiscal 2007, and specifically reaffirmed earnings before interest, taxes, depreciation and amortization ("EBITDA") for fourth quarter 2006 to range of between $39 million and $41 million and earnings per share to range of between $0.69 and $0.74. These aggressive projections were crucial to the completion of a $200 million offering of convertible senior notes (which the Company announced on November 6, 2006), but had the effect of artificially inflating the price of the stock. On November 13, 2006, the Company announced that it had closed the note offering and received the offering proceeds.
On January 10, 2007, Hornbeck Offshore shocked the market by announcing that it was revising its EBITDA and earnings-per-share guidance for fourth-quarter and fiscal 2006, materially reducing EBITDA for the fourth quarter to range between $33 million and $34 million, down from previous projection of $39-$41 million. The Company announced it now expected per-share earnings for fourth quarter 2006 to range between $0.61 and $0.63, down from $0.72 to $0.77, and also expected to reduce 2007 guidance by 15 to 20 percent.
As a result of this news, Hornbeck Offshore shares slumped to a 52-week low in early trading on January 11, 2007, and the stock was down $7.11, or 21.2%, on increased volume.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than March 19, 2007, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.