NEW YORK, Aug. 4, 2014 /PRNewswire/ -- Wolf Popper LLP has filed a class action lawsuit 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 May 1, 2012 through July 29, 2014, and were damaged thereby. This action alleges claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you are a member of the Class, you may file a motion no later than October 3, 2014 to be appointed a lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who purchased Penn West on the NYSE during the Class Period and suffered losses are urged to contact Wolf Popper to discuss their rights.
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. 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.
Wolf Popper has successfully recovered billions of dollars for defrauded investors. The firm's reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation. See www.wolfpopper.com
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SOURCE Wolf Popper LLP