A law firm recently announced that it has filed a securities class action suit against a Canadian oil and natural gas production company listed on the New York Stock Exchange for alleged violations of federal securities laws.
Pomerantz, LLP, explained that it commenced the litigation in the U.S. District Court for the Southern District of New York against Penn West Petroleum Ltd. The class action lawsuit was filed on behalf of individuals who purchased shares in the company between Feb. 14, 2013 and July 29, 2014.
The complaint alleges that faulty financial reporting at Penn West led to misleading or false statements regarding its operations and prospects. Specifically, the firm was accused of compiling financial statements that contained incorrect classifications of operating expenses for property, plant and equipment, without documents to support the designation. The complaint alleges that this led to an overstatement of capital expenditures. Also, some operating expenditures purportedly were improperly labeled by the company as royalty spending. In addition to the litigation's claims of improper financial controls, the company's unsecured, revolving syndicated bank facility was allegedly not in compliance with certain arrangements.
After the market closed on July 29, 2014, the firm announced that its board of directors' audit committee was implementing a voluntary, internal audit of the company's accounting processes. The board also concluded that due to the nature of its accounting documents, which would have to be revised, Penn West would also be late to post second quarter financial results. Following the release of this news, shares of the oil and natural gas company fell $1.30, over 14 percent, in order to close at $7.85 on July 30, 2014.
Individuals who purchased shares in the firm during the class period, and would like to request appointment as lead plaintiff from the court, have until Oct. 3, 2014 to do so. Investors who are interested in learning more about the class action lawsuit against Penn West should contact Robert Willoughby for more information.
A growing number of class action lawsuit
Pomerantz is just one of many law offices that have initiated suits against the oil and natural gas firm, according to the Times Colonist, a west Canadian newspaper. Rochon Genova, LLP, Docken Klym and Merchant Law are just a few of the Canadian firms who have, or will soon, commence litigation against the company. A number of U.S. law firms in addition to Pomerantz have also filed their own complaints.