SAExploration Holdings, Inc.
- Company Name
- SAExploration Holdings, Inc.
- Stock Symbol
- Class Period
- March 15, 2016 to August 15, 2019
- Motion Deadline
- October 17, 2019
- Southern District of Texas
The complaint charges SAExploration and certain of its officers and/or directors with violations of the Securities Exchange Act of 1934. SAExploration provides seismic data acquisition, logistical support, and processing and integrated reservoir geosciences services in North America, South America, the Asia Pacific, and West Africa.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding SAExporation’s business and financial condition. Specifically, defendants failed to disclose that Alaska Seismic Ventures, LLC (“ASV”) should have been classified by the Company as a variable interest entity, that because the Company had a controlling financial interest in ASV, it was required to consolidate ASV in its financial statements, that these practices were likely to lead to an investigation of the Company by the SEC, and that SAExploration would be forced to delay the filing of its quarterly report on Form 10-Q for the quarter ended June 30, 2019 with the SEC. As a result of this information being withheld from the market, SAExploration securities traded at artificially inflated prices during the Class Period, with the Company’s stock price reaching a high of more than $2,400 per share.
Then, on August 15, 2019, the Company announced that the SEC was conducting an investigation into certain accounting matters that arose in 2015 and 2016. The Company also announced it would be restating its previously issued financial statements for fiscal years 2015 to 2018 and would delay the filing of its Form 10-Q for the quarter ended June 30, 2019. SAExploration also announced that Jeff Hastings, the Company’s CEO and Chairman, had resigned his chairmanship and been placed on administrative leave, and its CFO, Brent Whiteley, had been terminated. The Company stated that it had determined that “ASV was a variable interest entity and that the Company had a controlling financial interest in ASV that required it to consolidate ASV during the [period under investigation] . . . . As a result of the above, the Company has determined that a material weakness exists in [its] internal control over financial reporting and that disclosure controls and procedures were ineffective during” that period. On this news, the price of the Company’s shares fell $1.13 per share, or more than 34%, to close at $2.14 per share on August 15, 2019.