ENGLEWOOD CLIFFS, N.J., Feb. 8, 2007 (PRIME NEWSWIRE) -- Gardy & Notis, LLP ("Gardy & Notis") has filed a class action lawsuit in the United States District Court for the Eastern District of Louisiana, on behalf of an institutional investor who purchased, exchanged or otherwise acquired the common stock of Hornbeck Offshore Services, Inc. ("Hornbeck" or the "Company") (NYSE:HOS) between November 1, 2006 and January 10, 2007 (the "Class Period").
The complaint alleges that Hornbeck and certain of its officers and directors violated the federal securities laws by making false and misleading statements and omissions concerning the Company's operations and expected earnings for the 4th quarter 2006 and for fiscal 2007. On November 1, 2006, the Company reaffirmed its guidance for fiscal 2007 and specifically reaffirmed earnings before interest, taxes, depreciation and amortization ("EBITDA") for the fourth quarter of 2006 to a range of between $39.0 million and $41.0 million and earnings per share to a range of between $0.69 and $0.74. On November 6, 2006, the Company announced an offering of $200.00 million in convertible senior notes with an over-allotment of $30.0 million in principal amount of additional notes. On November 13, 2006, the Company announced that it had closed the note offering and received the offering proceeds.
On January 10, 2007, the Company shocked the market by announcing that it was revising its EBITDA and earnings per share guidance for the fourth quarter of 2006 and for fiscal 2006, materially reducing EBITDA for the fourth quarter of 2006 to range between $33.0 million and $34.0 million, down from $39.0 million to $41.0 million. The Company announced it now expected that per share earnings for the fourth quarter of 2006 to range between $0.61 and $0.63, down from $0.72 to $0.77. It also expected to reduce 2007 guidance by 15 to 20 percent.
The Company was forced to admit that it had knowledge over the previous several months 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.
As a result of this unexpected news, the price of Hornbeck 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 markedly increased volume.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Hornbeck securities during the Class Period. If you purchased or otherwise acquired Hornbeck securities during the Class period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Hornbeck securities during the Class Period, you may, no later than March 19, 2007, request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
If you wish to serve as lead plaintiff in this case, you must move the Court no later than March 19, 2007. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss your legal rights, you may e-mail or call Gardy & Notis, without obligation or cost to you. You may contact Dustin Mansoor of Gardy & Notis at (201) 567-7377, or by email at dmansoor@gardylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca/