SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP, in conjunction with Rochon Gerova LLP, announces that class action litigation has been brought on behalf of those who purchased or otherwise acquired the securities of Penn West Petroleum Ltd. (“Penn West” or the “Company”) (NYSE: PWE; TSX: PWT) between May 1, 2012 and July 29, 2014, inclusive (the “Class Period”).
If you purchased or otherwise acquired Penn West securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than September 29, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Penn West Petroleum investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Penn West Securities Class Litigation
The actions charge Penn West and certain of its senior officers with violations of the Securities Exchange Act of 1934. Penn West is one of the largest conventional oil and natural gas producers in Canada.
The complaints allege that during the Class Period, defendants made materially false and/or misleading statements about Penn West’s business, operational and compliance policies.
On July 29, 2014, Penn West announced that it had launched an internal review of its accounting practices and that its Board of Directors had concluded that the Company’s financial statements for at least the years ended December 31, 2012 and 2013, and for the three months ended March 31, 2013 and 2014, and related management’s discussion and analysis (“MD&A”) must be restated. According to Penn West, its Audit Committee found that for 2012 and 2013, approximately $181 million in operating expenses were reclassified to property, plant and equipment as capital expenditures without adequate support, and that the Company had “incorrectly reclassified” approximately $200 million in additional operating expenses as royalty expenses. According to Penn West, these practices appeared to have existed in prior years, necessitating a review of all financial statements issued for the fiscal years 2010 through 2014.
Penn West further disclosed that as a result of identified accounting practices and the Company’s decision to restate certain historical financial statements and possibly delay the release of its second quarter 2014 financial results, Penn West may not be in compliance with certain of its covenants under its unsecured, revolving syndicated bank facility and the terms of its senior unsecured notes.
On this news, the price of Penn West stock trading on the NYSE fell $1.30 per share, or 14.21%, from a previous close of $9.15 on July 29, 2014, to close at $7.85 per share on July 30, 2014, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation's top plaintiffs’ law firms for eleven years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs' bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have also named Lieff Cabraser as a “Law Firm of the Year” each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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