Penn West Petroleum settles lawsuits from accounting mistakes
Payments will come from insurance so finances of Calgary-based company not affected
- MORE NEWS | Construction of detached homes plunges 37% in Calgary
- MORE NEWS | Oil price sinks again despite Russian and Saudi pledge to limit production
The settlement in the Canadian and U.S. cases will be fully funded by the company's insurance, meaning its cash resources and financial position won't take a hit.
In July 2014, Penn West's new management team said it had discovered that hundreds of millions of dollars in expenses had been improperly classified under the company's previous leadership.
The Calgary-based oil and gas producer was forced to restate its financial reports for 2012-2013, and the first quarter of 2014.
The stock plummeted by 14 per cent the day after that announcement.
"The settlement agreements contain no admission of liability or wrongdoing and include full releases of Penn West, current and former directors and officers of Penn West and others," the company said in a release Tuesday.
"Penn West is settling the class action proceedings in order to avoid the continuing risks, uncertainties and costs of litigation."
The settlements are subject to court approval in Alberta, Ontario, Quebec and New York.