For those new here. This is old news that has already gone in front of the courts and a settlement has been reached  awarded to shareholders. Penn West insurance payed $53 mil to cover all costs of the lawsuit.

THE CLASS ACTION SUIT HAS BEEN SETTLED AND NO OTER SUCH SUIT WILL BE FILED AGAIN.

Ignore the SPIN.

Read the 2014 review so you can judge for yourself.

Penn West Provides Results of Internal Review of Accounting Practices, Files Restated Financial Statements and Confirms No Impact on Strategic Direction

Sep 18, 2014


https://pennwest.mediaroom.com/index.php?s=27585&item=135227

Corporate Criminal Liability: An Overview of Federal Law


The critical factors when it comes to corporate liability, however, are culpability factors. The factors identified in the business organization guidelines include:
 
• Pervasiveness of the wrongdoing within the corporation
 
• The corporation’s history of misconduct
 
• The existence and performance of compliance programs
 
• The corporation’s timely and voluntary disclosure of wrongdoing
 
• The corporation’s cooperation
 
• Absence of obstruction
 
• Collateral consequences
 
• Restitution.
 
Conversely, it may not be appropriate to charge a corporation, “particularly one with a robust compliance program in place, under a strict respondeat superior theory for the single isolated act of a rogue employee.
 
Widely dispersed compliance program tailored to detect and prevent the offenses most likely to occur in the corporation’s operational environment may have a real impact. An effective plan may reduce the chances of a prosecution and reduce the severity of the charges and any subsequent sentence should a prosecution occur. 
 
The guidelines point out that the Justice “Department encourages corporations, as part of their compliance programs, to conduct internal investigations and to disclose the relevant facts to the appropriate authorities.
 
Prosecutors have several alternatives to criminal trial. They may accept a corporation’s offer to plead guilty. They may defer prosecution of the corporation under a deferred prosecution agreement. They may accept a corporation’s offer to sign a non-prosecution agreement, frequently with the intent to prosecute corporate officials or employees. They may elect to forgo prosecution in favor of civil sanctions.