Lawyers involved in a series of securities class-action lawsuits against Penn West Petroleum Ltd. have reached a proposed $53-million settlement with the Calgary-based oil and gas company.
In 2014, three class-action lawsuits were launched against the firm and several of its former executives and directors in Alberta, Ontario and Quebec while an additional class-action lawsuit was brought forth in the U.S. The plaintiffs in the case alleged misrepresentations in the company’s financials harmed shareholders who bought the stock between March 2011 and July 2014.
The proposed plaintiffs and the defendants in the case have reached a settlement to each of these cases, subject to court approval. The proposed settlement, which would not see the defendants admit any wrongdoing, calls for a $53-million payment, half of which ($26.5 million) would go resolve the Canadian lawsuits.
The lawyers in the cases are seeking 33% of the settlement amount for legal fees (plus disbursements and taxes).
Court hearings to certify the cases as class actions, which is necessary in order to settle them, and to set the lawyers’ fees will be held on May 31 in Ontario, June 13 in Quebec, and June 27 in Alberta. The deadline for objections to the proposed settlement is May 26 for Ontario, May 27 in Quebec; and June 22 in Alberta.