Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit
against Penn West Petroleum Ltd.
Oklahoma City, OK (August 6, 2014) – On August 4, 2014, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Penn West Petroleum Ltd. (NYSE: PWE). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is May 1, 2012 through July 29, 2014. More specifically, this litigation was filed because, on July 29, 2014, Penn West Petroleum Ltd. ("Penn West" or the "Company") disclosed that its Audit Committee was conducting an internal review of certain of its accounting practices. Thus far, the Audit Committee has concluded that the Company improperly reclassified approximately $181 million in operating expenses as capital expenditures, and had "incorrectly reclassified" approximately $200 million in additional operating expenses as royalty expenses for 2012 and 2013. The Company intends to restate its past financial statements for years 2012 and 2013 and certain interim periods, and consequently, may not be in compliance with certain of its debt covenants.
Plaintiff seeks to recover damages on behalf of all Penn West Petroleum Ltd. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Friday, October 3, 2014 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Lynn.
Posted on Tue, September 16, 2014
by K. Lynn Nunn filed under