TORONTO, July 31, 2014 /CNW/ - On July 31, 2014, the law firms of Koskie Minsky LLP and Sutts, Strosberg LLP commenced a $400 million proposed securities class action against Penn West Petroleum Ltd. (TSX:PWT) and some of its senior officers and directors.
The plaintiff alleges that Penn West made a misrepresentation in its public disclosure between 2010 and 2014. In particular, Penn West improperly stated to the public that its financial statements followed Generally Accepted Accounting Principles and International Financial Reporting Standards.
On July 29, 2014, Penn West informed the public that it had been improperly recording operating expenses as capital expenditures and/or royalty expenses resulting in a significant understatement of its operating expenses and overstatement of its assets and earnings dating back to 2010.
The value of Penn West's stock has declined dramatically since its announcement on July 29, 2014.
"It is imperative that publicly-traded companies prepare and distribute financial statements that comply with the rules of accounting so that investors can make informed investment decisions" said Jay Strosberg of Sutts, Strosberg LLP.
If you acquired Penn West securities during the period from March 17, 2011 to July 29, 2014, please contact Koskie Minsky LLP at 1-866-545-9918 or email at [email protected] or Sutts, Strosberg LLP at 1-519-561-6296 or email at [email protected].
Koskie Minsky LLP, based in Toronto, and Sutts, Strosberg LLP, based in Windsor and Toronto, are two of Canada's foremost class action firms and have particular expertise in securities class actions.
SOURCE: Koskie Minsky LLP
For further information: Media contact: Jay Strosberg, (519) 561-6285, [email protected]