PENN WEST SHAREHOLDER ALERT– National Securities Law Firm Announces Expanded Class Period and Encourages Shareholders With Losses in Excess of $100,000 to Contact Law Firm Before the October 3, 2014 Deadline
September 8, 2014
New York, New York
Tripp Levy PLLC, a leading national securities law firm, announces that a new class action lawsuit has been filed against Penn West Petroleum, Ltd. (“Penn West”) (NYSE:PWE), and certain of its current and former officers, in the United States District Court for the Southern District of New York, on behalf of all persons who purchased shares of Penn West common stock on the New York Stock Exchange (“NYSE”) during the period February 17, 2011 through July 29, 2014 (the “Class”), and were damaged thereby. This action alleges claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The Complaint charges that Defendants made materially false and/or misleading statements, including that the Company was understating operating costs and overstating capital expenditures and royalty expenses; and the Company’s improper accounting practices were causing Penn West to be at risk of non-compliance with certain of its debt covenants.
On July 29, 2014, the Company disclosed that its Audit Committee was conducting an internal review of certain of its accounting practices for “2014 and the four previous fiscal years.” 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 will 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.
On this news, Penn West shares declined $1.30 per share or 14% on July 30, 2014.
If you purchased shares of Penn West since February 17, 2011 and suffered losses in excess of $100,000 on your investment, and wish to discuss this matter at no cost or expense, please contact us toll free at 1-800-511-7037 or contact us via our website.
Tripp Levy PLLC is a leading national securities and shareholder rights law firm with offices across the country representing both individual and institutional shareholders and, along with its affiliates, has recovered billions of dollars for shareholders. Tripp Levy PLLC is affiliated with Milberg LLP. Attorney advertising. Prior results do not indicate a similar outcome.