The Shareholders Foundation announces that an investor, who purchased shares of Penn West Petroleum Ltd (USA) (NYSE:PWE), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Penn West Petroleum Ltd (USA) (NYSE:PWE in connection with certain allegedly false and misleading statements made between May 1, 2012 and July 29, 2014.
Investors who purchased shares Penn West Petroleum Ltd (USA) (NYSE:PWE) have certain options and for certain investors are short and strict deadlines running. Deadline: October 3, 2014. NYSE:PWE investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Penn West Petroleum Ltd (USA) (NYSE:PWE) common shares between May 1, 2012 and July 29, 2014, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that Defendants made allegedly materially false and/or misleading statements, including that Penn West Petroleum Ltd was understating operating costs and overstating capital expenditures and royalty expenses; and Penn West Petroleum Ltd’s improper accounting practices were causing Penn West Petroleum Ltd to be at risk of non-compliance with certain of its debt covenants.
Penn West Petroleum Ltd reported that its annual Total Revenue declined from over $2.84 billion in 2012 to over $2.23 billion in 2013 and that its Net Income of $149 million in 2012 declined to a Net Loss of $838 million in 2013. Shares of Penn West Petroleum Ltd (USA) (NYSE:PWE) declined from $22.21 per share in February 2012 to as low as $7.12 per share in January 2014.
Since then NYSE:PWE shares rose to $10.14 per share in June 2014.
Then 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.
Shares of Penn West Petroleum Ltd (USA) (NYSE:PWE) declined from $9.15 per share on July 29, 2014, to $7.50 per share on July 30, 2014, respectively to as low as $7.20 per share on August 7, 2014.
On August 19, 2014, NYSE:PWE shares closed at $7.24 per share.
Those who purchased shares of Penn West Petroleum Ltd (USA) (NYSE:PWE) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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