TORONTO, Aug. 19, 2014 /PRNewswire/ - Rochon Genova LLP commenced a class action on August 15, 2014 on behalf of shareholders of Penn West Petroleum Ltd.
The action relates to the July 29, 2014 announcement by Penn West that it had launched a review of its financial statements for 2014 and four previous fiscal years, and that those statements could no longer be relied upon.
The claim alleges that Penn West's audit committee found a number of unreliable accounting entries, which had the effect of reducing operating costs and increasing the Company's reported capital expenditures and royalty expenses. These practices led to the improper classification of operating expenses over the course of several years from fiscal years 2010 through 2014. As a result of its internal review, Penn West restated its audited annual financial statements for the years ended December 31, 2012 and 2013, unaudited interim financial statements for the three months ended March 31, 2014 and 2013, and all related management's discussion and analysis. Penn West further acknowledged that it might not be in compliance with a number of covenants under its unsecured, revolving syndicated bank facility and the terms of its senior unsecured notes.
Following the announcement, Penn West's share price immediately fell on heavy volume. Over the week Penn West's market capitalizations dropped by close to 20 percent.
SOURCE ROCHON GENOVA LLP