Civitas Resources Faces Securities Fraud Class Action, Deadline Approaches for Investors to Act

Civitas Resources Class Action Alert

Deadline Approaching:
Civitas Resources, Inc. (NYSE: CIVI) is in the spotlight as Berger Montague PC announces a critical development regarding a securities fraud class action lawsuit that has now been filed against the company. Investors who acquired Civitas securities during the class period, from February 27, 2024, to February 24, 2025, should take immediate notice.

The firm has set July 1, 2025, as the cutoff for investors wishing to be appointed as lead plaintiffs in this case. Those interested in asserting their rights have the opportunity to learn more and potentially take action. The issues stem from significant concerns regarding Civitas's operational transparency and performance.

Background of Civitas Resources:
Civitas Resources, headquartered in Denver, specializes in crude oil and natural gas production. The allegations against them are rooted in a claim that the company did not adequately disclose critical information impacting its production capabilities and financial forecasts leading up to the recent class period.

According to filings, it was revealed that Civitas was planning to significantly reduce its oil production for the year 2025. Internal projections suggested a decline due to decreased output from its primary site in the DJ Basin, which reportedly peaked in the fourth quarter of 2024. Complicating matters further, increasing production levels would necessitate additional asset acquisitions and development undertakings.

Notably, on February 24, 2025, Civitas disclosed disappointing financial results for the fourth quarter of 2024 and the entire fiscal year. Reported revenues of $1.29 billion were below consensus estimates by $3.44 million, while non-GAAP earnings per share for the quarter fell short by $0.21 at $1.78. The net income dropped to $151.1 million, significantly down from $302.9 million the previous year.

The notice also detailed a disheartening forecast for 2025, attributing lower production volumes primarily to natural declines following the production peak. Additionally, the company announced a workforce reduction of 10% across all levels of employment.

Civitas also made headlines with the termination of key executive figures including Chief Operating Officer Hodge Walker and Chief Transformation Officer Jerome Kelly, marking significant leadership changes amidst the ongoing turmoil.

Consequently, on February 25, following the release of this information, Civitas’s stock plummeted, falling $8.95—an 18% drop, resulting in a closing share price of $40.35.

Investor Participation Details:
Investors who acquired shares during the defined class period and are considering joining the litigation are encouraged to reach out to Berger Montague. Andrew Abramowitz and Peter Hamner are available to discuss potential involvement and answer any queries. For those interested in serving as lead plaintiffs, it's essential to understand that lead plaintiffs represent the collective interests of all class members, allowing other investors to either participate or remain passive. The decision whether to take on this role does not impact one's eligibility to benefit from any potential recovery achieved through the lawsuit.

Berger Montague has a historic reputation in securities litigation, boasting over fifty years of experience in representing both individual and institutional investors across the nation. For concerned investors, engaging with legal counsel early is crucial to safeguard their interests in this unfolding situation.

For further inquiries or to learn more about how to assert your rights in this case, contact Andrew Abramowitz at [email protected] or (215) 875-3015, or reach out to Peter Hamner at [email protected]

Acting swiftly can ensure that affected investors have the opportunity to be adequately represented as this significant legal matter unfolds.