Penn West Petroleum Ltd. ("Penn West" or the Company) is in the business of oil and natural gas production. The majority of the Company's reserves are located in Canada.

According to the law firm press release, the Complaint charges that Defendants made materially false and/or misleading statements, including that the Company was understating operating costs and overstating capital expenditures and royalty expenses; and the Company's improper accounting practices were causing Penn West to be at risk of non-compliance with certain of its debt covenants.

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.

On this news, Penn West shares declined $1.30 per share or 14% on July 30, 2014.

On October 29, 2014, the Court issued an Order appointing Lead Plaintiff and Lead Counsel. Lead Plaintiff filed a consolidated Complaint on December 19.

The parties entered into a Stipulation of Settlement on February 12, 2016. This Settlement was preliminarily approved by the Court on March 1. Final approval was granted on June 28.

On September 15, 2018, the Court issued an Order approving the Settlement's distribution plan.