The Superior Court of Justice approved a $26.5 million settlement in a securities class action against Penn West Petroleum Ltd. and its officers/directors.
The court emphasized the "zone of reasonableness" analysis for settlement approval, requiring class counsel to provide sufficient evidence, particularly regarding available insurance coverage, to justify the settlement amount.
Leave was granted under the Securities Act and the action was certified for settlement purposes under the Class Proceedings Act.
Class counsel's contingency fees of 33% were also approved.
