NEW YORK, Sept. 18, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Penn West Petroleum Ltd. ("Penn West" or the "Company") (NYSE:PWE) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 14-cv-6068, is on behalf of a class consisting of all persons or entities who purchased Penn West securities between February 14, 2013 and July 29, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Penn West securities during the Class Period, you have until October 3, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Penn West is one of the largest conventional oil and natural gas producers in Canada. The Company operates as an exploration and production company that acquires, explores, develops, exploits, and holds interests in petroleum and natural gas properties and related assets in western Canada.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Penn West's financial statements contained errors related to the improper classification of operating expenses as property, plant and equipment without documentary support, resulting in an overstatement of capital expenditures; (2) certain additional operating expenses were incorrectly classified as royalty expenses; (3) the Company lacked adequate internal controls over financial reporting; (4) the Company was not in compliance with certain of its covenants under its unsecured, revolving syndicated bank facility; and (5) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On July 29, 2014, after the close of trading, Penn West announced that the Audit Committee of the Company's Board of Directors was conducting a voluntary, internal review of certain of the Company's accounting practices. At that time, the Board of Directors of Penn West had concluded that certain of the Company's historical financial statements and related management's discussion and analysis ("MD&A") would need to be restated, which would likely delay the release of the second quarter 2014 financial results.
On this news, shares of Penn West fell $1.30, or more than 14%, on extremely heavy volume, to close at $7.85 on July 30, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.