#USA #Class Action #Securities Fraud #Denver #Civitas Resources

Civitas Resources Faces Class Action Lawsuit

A class action lawsuit has recently been instigated against Civitas Resources, Inc., a major player in the crude oil and natural gas sector, which is publicly traded under the ticker symbol CIVI on the New York Stock Exchange. The suit highlights significant concerns about the company’s disclosure practices during a critical period for its operations.

The lawsuit, spearheaded by Berger Montague PC, specifically targets potential investors who purchased Civitas securities from February 27, 2024, through February 24, 2025. The firm has urged affected investors to act quickly to seek representation as lead plaintiffs, with a deadline set for July 1, 2025. The need for urgency arises from the potential impact on investor finances, as the consequences of the company’s alleged nondisclosures could lead to financial losses for shareholders.

At the heart of the allegations is Civitas’s purported failure to inform investors about the likelihood of a significant decrease in oil production starting in 2025, primarily due to declines following a production peak at the DJ Basin in late 2024. The company is further accused of needing substantial additional acreage and development points to maintain or increase its production levels. The complaint suggests that this situation would inevitably lead to major cost-reduction strategies that might disrupt its operations.

On February 24, 2025, Civitas reported its fourth-quarter and full-year financial results for 2024, revealing a revenue figure of $1.29 billion, disappointing many stakeholders as it fell short of consensus estimates by approximately $3.44 million. Furthermore, the company announced non-GAAP earnings per share of $1.78, which did not meet the expected forecast by $0.21 per share. This raised a series of red flags among investors concerned about the company's operational health and transparency.

Amid the poor financial performance, Civitas also announced a significant workforce reduction of 10% across various levels, alongside leadership turmoil, including the termination of its Chief Operating Officer and Chief Transformation Officer. This news prompted a drastic reaction in the market, with Civitas's stock price plummeting by $8.95, an 18% decrease that reduced its share value to $40.35 on February 25, 2025.

As a result of the lawsuit, all investors who feel affected and are willing to claim restitution are encouraged to review their options promptly. Berger Montague, a pioneer in securities class action litigation since 1970, positions itself as a capable ally for those navigating this complex situation. They emphasize the importance of representation in legal matters concerning shareholder rights and financial safety.

Investors are urged to contact Berger Montague for further information regarding their rights and potential participation in the lawsuit. Investors can be represented by a lead plaintiff, who acts on behalf of all members of the class, guiding the litigation process. However, it's important to note that participation in any recovery does not require an investor to serve as the lead plaintiff or communicate with any specific counselor.

The outcome of this lawsuit could potentially set significant precedents for transparency and operational reporting in the energy sector—or it may offer considerable financial recovery to investors who were caught unaware of the underlying issues affecting their investments in Civitas. As the situation develops, shareholders and potential investors alike are encouraged to stay informed and engaged in ongoing legal proceedings.