SOURCE: Izard Nobel LLP

May 09, 2011 16:25 ET

Izard Nobel LLP Announces Class Action Lawsuit Against HQ Sustainable Maritime Industries, Inc.

WEST HARTFORD, CT--(Marketwire - May 9, 2011) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Washington on behalf of purchasers of the common stock of HQ Sustainable Maritime Industries, Inc. ("HQS" or the "Company") (NYSE Amex: HQS) between May 11, 2009 and April 1, 2011, inclusive (the "Class Period").

The Complaint charges HQS and certain of its officers and directors violated federal securities laws. Specifically, defendants failed to disclose the following: (i) that a substantial portion of the Company's revenues were overstated; (ii) HQS' financial statements were not fairly presented in conformity with Generally Accepted Accounting Principles; and (iii) that HQS was operating with material deficiencies in its internal control over its financial reporting.

On March 16, 2011, HQS announced that it would postpone the filing of its annual report on Form 10-K until April 1, 2011. On April 1, 2011, it was revealed that HQS was still out of compliance with federal laws and AMEX listing standards, causing trading in the Company's shares to be suspended by AMEX. In a letter dated April 6, 2011, the Chairman of the Company's audit committee of the board of directors abruptly resigned, and disclosed how the CEO had blocked the independent auditors from reviewing data necessary to audit the reported sales and revenues of HQS.

If you are a member of the class, you may, no later than June 27, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/hqsustainablemaritimeindustries/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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