#USA #Securities Fraud #Denver #Berger Montague #Civitas Resources

Important Notice for Civitas Investors

Date: June 30, 2025

Berger Montague PC, a well-respected law firm known for its expertise in securities class action lawsuits, is sounding an alarm for investors associated with Civitas Resources, Inc. (NYSE: CIVI). A significant class action lawsuit has been filed, and the deadline for investors to respond is rapidly approaching—specifically, July 1, 2025. This article aims to elucidate the situation surrounding Civitas and the implications of becoming a lead plaintiff in this class action.

Context of the Class Action

Civitas Resources operates chiefly in the crude oil and natural gas sector, with its headquarters situated in Denver. The lawsuit addresses a period of concern from February 27, 2024, through February 24, 2025, during which numerous investors purchased Civitas securities. Notably, the lawsuit accuses Civitas of misleading shareholders by withholding critical information about its operational capacity and financial outlook.

According to the legal complaint, during the class period, Civitas failed to disclose that it was faced with a substantial risk of a significant reduction in oil production for 2025. This downturn was a consequence of natural declines in production from the DJ Basin following its peak production in late 2024. Furthermore, the complaint cites the company's need to secure additional land and development locations to maintain or boost its production levels, all while contemplating disruptive cost-reduction measures.

Financial Performance and Stock Impact

On February 24, 2025, Civitas released its Q4 and full-year performance figures for 2024, revealing a revenue of $1.29 billion, which fell short of market expectations by $3.44 million. More alarmingly, their non-GAAP earnings per share for the same quarter were $1.78, missing estimates by $0.21 per share. The firm also reported a net income of $151.1 million, down significantly from $302.9 million a year earlier, indicating a troubling financial trajectory.

On the same day, Civitas publicly outlined expectations for its operational performance in 2025. The announcement highlighted a projected decline in production volumes, primarily attributed to trends in the DJ Basin, which had recently reached peak outputs. Amid these challenging revelations, Civitas also announced a 10% workforce reduction and the termination of key executives, including its Chief Operating Officer and Chief Transformation Officer.

As a direct result of this news, Civitas's stock experienced a sharp decline, losing $8.95 per share or roughly 18%, bringing the share price down to $40.35 on February 25, 2025.

The Role of the Lead Plaintiff

For investors who purchased shares during the specified class period, the opportunity to participate in a class action is crucial. Prospective lead plaintiffs are those investors who hold the most significant financial interest in the outcome of the litigation and who typically reflect the interests of the broader class. The lead plaintiff is empowered to guide the litigation process and select legal counsel. Importantly, investors are not obligated to take on this role to benefit from any potential settlement.

To safeguard your rights, interested investors are invited to reach out directly to Berger Montague's Andrew Abramowitz at andy.abramowitz@bm.net or by phone at (215) 875-3015. Alternatively, Peter Hamner is also available for queries through peter.hamner@bm.net.

Conclusion

Berger Montague stands alongside its clients, demonstrating steadfast advocacy for both individual and institutional investors, through its more than five-decade history in securities class action litigation. Investors are encouraged to act before the July 1, 2025 deadline to ensure their voices are heard in this pivotal case. As always, it's vital for investors to stay informed and prepared in these uncertain times within the stock market.

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Contact:
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
andy.abramowitz@bm.net
Peter Hamner
Berger Montague PC
peter.hamner@bm.net(mailto:peter.hamner@bm.net)

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