Oil Startup Faces Investor Suit Over Drilling Problems

Law360, New York (April 3, 2012, 6:07 PM EDT) -- A proposed investor class action filed Monday accuses startup oil and gas firm Hyperdynamics Corp. of deceiving investors by issuing optimistic statements about offshore exploration efforts that have failed to yield anything in the way of black gold.

Allegations in the complaint center on Hyperdynamics’ work off the coast of Guinea in western Africa. Ray Leonard, chief executive of the Houston-based company, is accused of painting a rosy portrait of operations the lawsuit says were really a hideous mess.

Over the course of 2011, Leonard spoke...
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