Civitas Resources Faces Class Action Lawsuit: Important Deadline for Investors

On May 22, 2025, Berger Montague PC announced a significant development for investors of Civitas Resources, Inc., traded on the NYSE under the symbol CIVI. A securities class action lawsuit has been initiated against Civitas, and all investors who acquired the company's securities between February 27, 2024, and February 24, 2025, are urged to pay attention to this matter.

Key Information About the Lawsuit

The deadline for affected investors to seek appointment as a lead plaintiff in this class action is July 1, 2025. To participate, investors must take action before this date, as it is critical for their representation in the lawsuit. The allegations revolve around Civitas's lack of disclosure regarding its operations, particularly concerning its oil production metrics for 2025.

According to the complaint, throughout the specified class period, Civitas allegedly withheld vital information regarding their oil production outlook. The company was said to be in a position where it highly likely would need to significantly reduce oil production due to operational declines following peak production levels at the DJ Basin in late 2024. Furthermore, the lawsuit suggests that increases in oil production would require additional acquisitions of acreage, along with disruptive cost-reduction measures.

Financial Performance Under Scrutiny

The company's financial performance has come under critical examination, especially after Civitas announced its financial results for Q4 2024 on February 24, 2025. These results revealed revenues of $1.29 billion, which fell short of market expectations by $3.44 million. Additionally, Civitas reported non-GAAP earnings per share of $1.78, missing consensus estimates by $0.21 per share. The comparison to the previous year showed a stark decline in net income, with Civitas recording $151.1 million (equivalent to $1.57 per share) compared to $302.9 million (or $3.23 per share) in the same quarter a year earlier.

In light of this disappointing financial report, Civitas outlined a somber outlook for 2025. They indicated that the expected lower production volumes would chiefly stem from declines in the DJ Basin, underscoring concerns about long-term operational viability. Additionally, the company launched a significant workforce reduction, cutting its workforce by 10% across the board, which raised further alarms among investors.

The announcement also included the termination of top executives, namely Chief Operating Officer Hodge Walker and Chief Transformation Officer Jerome Kelly, which signaled internal strife and heightening uncertainties within the company.

Investors Urged to Act

The news surrounding Civitas's stock price did not bode well for investors, as it saw a steep drop. Following the unveiling of troubling financial results and operational decisions, Civitas's stock plunged $8.95, representing an 18% decline, closing at $40.35 per share on February 25, 2025. This abrupt reduction has encouraged investors to examine their legal options closely.

For those who purchased shares of Civitas during the targeted time frame, insight into their rights is crucial. Berger Montague serves as a resource, offering guidance on how to engage in this lawsuit, and encouraging potential lead plaintiffs to step forward to consolidate collective interests in the proceedings.

This lawsuit highlights the importance of corporate transparency in financial reporting and the responsibilities of publicly traded companies to keep their investors informed about critical operational shifts. Stakeholders of Civitas Resources should be proactive in protecting their financial interests amid these evolving legal developments.

To inquire further about your rights or to discuss potential involvement in the lawsuit, interested parties are encouraged to reach out to Berger Montague's representatives. The firm has extensive experience in class action lawsuits and has been a leader in securities litigation since its inception in 1970. With offices in key cities including Philadelphia, Minneapolis, and Washington D.C., they are well positioned to assist affected investors.

For more information, or to seek legal counsel, investors can connect with Andrew Abramowitz at Berger Montague at (215) 875-3015 or via email at [email protected]. Peter Hamner is also available at [email protected].

By acting swiftly and staying informed about these proceedings, investors can make better decisions regarding their shares in Civitas Resources. The class action lawsuit serves as a reminder of the need for vigilance and engagement in one’s investments.