TORONTO, July 13, 2016 /CNW/ - Penn West Petroleum Ltd. has paid CDN$53M in full and final settlement of all claims against them in Canada and the United States including class counsel fees and administration costs in return for releases and a dismissal of the class actions in both countries relating to the restatement of the company's financial statements. The settlement was funded by Penn West's insurers and has been approved by the courts in Ontario, Alberta, Québec and the United States.
The Settlement Amount has been allocated in equal parts of $26,500,000 to the settlement of the class actions in Canada and the United States. The net settlement monies, after payment of administration expenses and Class Counsel Fees, will be distributed in accordance with the court-approved and supervised Plan of Allocation.
In 2014, proposed class actions were commenced against Penn West and others in the Ontario Superior Court of Justice, Middlemiss v. Penn West Petroleum Ltd. et al., Court File Number CV-15-525189-00CP, the Québec Superior Court, Benadiva v. Penn West Petroleum Ltd. et al., Court File Number 500-06-000713-145 and the Alberta Court of Queen's Bench, Allen v. Penn West Petroleum Ltd. et al., Court File Number 1401-08454. The plaintiffs in these actions alleged that Penn West's historical financial statements were not prepared in accordance with GAAP and/or International Financial Reporting Standards. A related class action was also commenced in the United States District Court for the Southern District of New York for persons and entities who purchased or otherwise acquired Penn West common stock, trust units or call options or sold Penn West put options on an open market located within the United States, including but not limited to the New York Stock Exchange or another U.S. exchange, from February 18, 2010 through July 29, 2014, inclusive, and who were damaged thereby.
"We are very pleased with this outcome and that Penn West Petroleum Ltd. will compensate investors," said Jay Strosberg, Partner of Sutts Strosberg LLP.
Each Canadian Class Member must submit a completed Claim Form on or before November 14, 2016 in order to participate in the settlement. The Claim Form can be accessed or downloaded at www.PennWestCanadianClassAction.com or obtained by calling the Administrator at 1.888.244.1486.
Further information on the Canadian settlement, including the Settlement Agreement, Plan of Allocation and the court orders, may be found at www.PennWestCanadianClassAction.com.
For information about the U.S. Class Action, please visit: www.PennWestUSSecuritiesLitigation.com.
SOURCE Sutts, Strosberg LLP Barristers & Solicitors
For further information: ONTARIO AND ALBERTA CLASS ACTIONS, Jay Strosberg, Sutts, Strosberg LLP, 600-251 Goyeau Street, Windsor, ON N9A 6V4, Tel: 1.866.571.5040, Fax:1.866.316.5308, Email: [email protected]; QUÉBEC CLASS ACTION, Daniel Chung, Merchant Law Group LLP, 200-10 rue Notre-Dame Est, Montréal, QC H2Y 1B7, Tel: 1.514.248.7777, Fax: 1.514.842.6687, Email: [email protected]