#USA #New York #Class Action #Pomerantz Law Firm #Civitas Resources

Pomerantz Law Firm Files Class Action Against Civitas Resources

In a significant legal move, Pomerantz LLP has initiated a class action lawsuit against Civitas Resources, Inc., also known simply as Civitas. The firm, known for its extensive experience in corporate and securities litigation, announced that the lawsuit was filed in the United States District Court for the District of New Jersey under docket number 25-cv-03791. This action targets both the company and its key officials, alleging violations of federal securities laws that occurred during the class period from February 27, 2024, to February 24, 2025.

The Allegations

The class action represents the interests of all individuals and entities who purchased or acquired Civitas securities during the aforementioned period. The lawsuit claims that these parties suffered damages due to misleading statements made by Civitas's management regarding the company’s business operations and financial prospects. Specifically, it alleges that the defendants failed to disclose critical information related to production levels in the DJ Basin, corporate financial health, and necessary workforce reductions. These omissions allegedly led to inflated stock prices prior to a significant drop following the company’s performance announcements in early 2025.

According to the filed complaint, Civitas projected high production volumes and a robust growth strategy, yet unbeknownst to investors, production from the DJ Basin was nearing a peak, and the company had begun a drastic reduction in the pace of newly operational oil wells, referred to as turned-in-lines (TILs). This lack of transparency is at the heart of the lawsuit, with plaintiffs arguing that they were misled by false and misleading statements regarding the company’s viability and growth trajectory.

Recent Developments

On February 24, 2025, Civitas revealed its disappointing financial results for the fourth quarter of 2024, reporting revenues of $1.29 billion — falling short of investor expectations. The company also announced significant declines in net income compared to the previous year and a troubling increase in interest expenses associated with its debt. These revelations led to a drastic reduction of around 18% in Civitas's stock price, raising eyebrows among analysts and investors alike.

The 2025 outlook outlined by Civitas further fueled the fire of concern, as it included plans to reduce oil production by approximately 4% and a workforce cut aimed at trimming operational costs. The company also revealed high-interest expenses and acknowledged the challenges of maintaining production levels in light of its operational limitations and declining asset viability. Notably, Civitas's management abruptly changed, terminating key officials as the company sought to reset its strategic direction, which only added to speculation and worries surrounding its stability.

Call for Investors

Investors who acquired Civitas securities during the class period are encouraged to take immediate action. They have until July 1, 2025, to seek appointment as Lead Plaintiff in this class action. Interested parties can obtain additional information regarding the complaint and the process through Pomerantz LLP's website.

Pomerantz Law Firm's Legacy

Founded over 85 years ago, Pomerantz LLP has been at the forefront of class action litigation, winning significant recoveries for aggrieved investors. The firm's reputation stems from its dedicated efforts in protecting the rights of individuals against corporate misconduct and financial fraud.

The Civitas class action lawsuit serves as a reminder of the ongoing challenges and complexities investors face in navigating corporate communications and the importance of transparency and accountability in publicly traded companies. As developments unfold, stakeholders will be watching closely to see how this case progresses and what it means for Civitas's future.