#United States #New York #Class Action #Levi & Korsinsky #Civitas Resources

Civitas Resources Class Action Overview

Civitas Resources, Inc. (CIVI) is facing a significant class action lawsuit, initiated by the law firm Levi & Korsinsky, LLP, aimed at protecting the interests of investors who have witnessed financial losses due to alleged fraudulent activities. This article discusses the essential details of the lawsuit and what affected shareholders need to know.

Understanding the Class Action

The class action lawsuit is directed towards shareholders who held Civitas Resources shares between February 27, 2024, and February 24, 2025. During this time, Civitas is accused of making misleading public statements regarding its business performance and financial health. Investors who experienced a loss during this period are encouraged to participate in this significant legal action.

The lawsuit stems from several key allegations:
1. Production Decline: There were indications that Civitas would drastically reduce its oil production in 2025, a significant shift from its prior forecasts. This decline was attributed to various factors, including a decrease following the peak production at the DJ Basin at the end of 2024.
2. Financial Overextension: The company's strategy to enhance production capacity would require significant investments in new land and drilling locations, likely resulting in substantial debt. Civitas was expected to finance these acquisitions by selling off corporate assets, raising concerns about its financial stability.
3. Workforce Reductions: Reports suggested that the company would implement stringent cost-cutting measures, including workforce reductions, which could disrupt operations and impact employee morale.
4. Misleading Statements: The allegations suggest that Civitas overstated its business operations and financial prospects, leading investors to believe that the company was on a solid growth trajectory when, in reality, it was facing severe risks.

These factors combined suggested that the company's public communications were not only inaccurate but also misleading, potentially violating securities laws.

What Affected Shareholders Should Do

For shareholders who have suffered losses during the aforementioned period, it is crucial to act promptly. The deadline to request the Court to appoint you as a lead plaintiff is July 1, 2025. It’s important to note that sharing in any potential recovery does not require individuals to serve as lead plaintiffs.

If you are a class member, you may qualify for compensation with no upfront costs or fees involved. This means that participating in the lawsuit comes at no financial risk to you, as there are no out-of-pocket expenses for class members.

Why Levi & Korsinsky?

Levi & Korsinsky, LLP has a proven track record, having secured hundreds of millions of dollars for aggrieved shareholders over the last two decades. With a dedicated team of more than 70 professionals, the firm specializes in complex securities litigation and has consistently been ranked among the top securities litigation firms in the United States.

For those interested in pursuing a claim, Levi & Korsinsky offers comprehensive support and guidance throughout the process. They have successfully represented many shareholders in high-stakes cases, ensuring that investor rights are protected.

Contact Information

For further details, investors can reach out directly to the team at Levi & Korsinsky:

• - Joseph E. Levi, Esq.

Email: [email protected]
Phone: (212) 363-7500
Address: 33 Whitehall Street, 17th Floor, New York, NY 10004

As the situation with Civitas Resources unfolds, affected shareholders are urged to take advantage of this opportunity to seek justice for their financial losses. By joining this class action lawsuit, they can hold the company accountable for any misleading practices that have negatively influenced their investments.