Ongoing Investigation by Faruqi & Faruqi, LLP into Civitas Resources Claims

Faruqi & Faruqi, LLP Investigates Civitas Resources Claims

As of May 22, 2025, Faruqi & Faruqi, LLP, a prominent national securities law firm, has launched a thorough investigation into potential claims against Civitas Resources, Inc. (Civitas). This investigation is particularly focused on addressing losses suffered by investors exceeding $100,000 between February 27, 2024 and February 24, 2025. With July 1, 2025 set as the deadline for investors to participate in a federal securities class action as lead plaintiffs, the law firm's initiative comes at a crucial time.

Background of the Investigation

The initiative stems from allegations that Civitas and its executives violated federal securities laws by making misleading statements and failing to disclose essential information. Notably, it is alleged that:

1. Civitas was likely to significantly cut its oil production in 2025 due to declines within the DJ Basin, affecting its overall business stability.
2. The company would need to acquire additional assets and incur debt to maintain its oil production, which might lead to significant workforce reductions and asset sales.
3. The operational capabilities and financial outlook of Civitas were exaggerated, misleading investors about the company’s actual strength and prospects.

On February 24, 2025, Civitas disclosed disappointing earnings results and announced layoffs affecting 10% of its workforce. Following this announcement, the company’s stock price plummeted by 18.2%, leading to financial losses for many investors. This decline has intensified the scrutiny surrounding Civitas's management and operational decisions.

Legal Implications

Investors who have incurred significant losses are encouraged to contact Faruqi & Faruqi directly to discuss how they can participate in the upcoming class action. The firm emphasizes that individuals wishing to be appointed as lead plaintiffs must act before the approaching deadline. Those affected can either choose to lead the litigation or remain anonymous as part of the class.

The firm also welcomes insights from whistleblowers, former employees, and anyone with relevant information regarding Civitas's practices.

Conclusion

Faruqi & Faruqi has established a strong reputation since its inception in 1995, recovering substantial sums for investors facing unfair practices. Individuals concerned about their investments in Civitas Resources or those who suspect misconduct are advised to reach out for a confidential discussion. The potential for recovery remains, but timely action is critical given the impending deadline for legal participation.

For more detailed information about the class action against Civitas Resources and related inquiries, potential plaintiffs can visit www.faruqilaw.com/CIVI or contact partner Josh Wilson at 877-247-4292 or via email. Stay informed with real-time updates on their social media platforms.