Boston, MA 09/25/2014 (wallstreetpr) – Glancy Binkow & Goldberg LLP issued a notice to investors of Penn West Petroleum Ltd (USA) (NYSE:PWE) yesterday. The notice concerned those who had bought the company’s securities during the period from May 4, 2012 to July 29, 2014.
The firm reminded investors of the exploration and production company that they can file a motion to be appointed as chief petitioner latest by Oct 3, 2014. As the business wire article highlights, the case concerns the shareholder lawsuit that was filed in the U.S. District Court that caters to the Southern District of New York.
The Lawsuit
According to the shareholder lawsuit, defendants’ claims were either based on false statements or failed to properly convey disclosures. The claims concerned include the assertion that: Firstly Penn West Petroleum Ltd (USA) (NYSE:PWE)’s financial report failed to classify some operating expenses completely, which resulted in an overstatement of expenses related to the company’s capital. Secondly, some operating costs were falsely classified as royalty costs. Thirdly, the company had inadequate internal leverage of its financial reporting. And lastly, Penn West did not comply with some covenants that fall under its unsecured and revolving syndicate bank facility.
Earlier on July 29, the company had announced that its Audit Committee will be conducting an internal, voluntary probe of some of its accounting practices. It also announced that the announcement of its second quarter results may be delayed in the process. Penn West Petroleum Ltd (USA) (NYSE:PWE)’s Board of Directors had come to the decision that some of the company’s previous financial statements needed to be retested. In addition, they had announced that they will also review some of the company’s management discussions and evaluations also needed to be revisited. The Board said that the second quarter results will be hence announced after a certain delay.
Glancy Binkow raised a reminder for investors concerned with this lawsuit, emphasizing that Oct 3 is the last date for them to serve as a chief plaintiff.
