#United States #San Francisco #Hagens Berman #SEC Whistleblower #Sable Offshore

Sable Offshore Accused of Misleading Investors

A recent class-action lawsuit has emerged against Sable Offshore Corp. (NYSE: SOC), accusing the oil company of misleading its investors regarding the restart of oil production off the coast of California. Filed in a federal court in California, the lawsuit claims that Sable Offshore utilized misleading statements that resulted in artificially inflating its stock price just prior to a significant secondary public offering (SPO).

Hagens Berman, the law firm spearheading the case, is urging those affected by the alleged misrepresentations to come forward before the September 26 deadline for investors to join the lawsuit. The class period encompasses transactions from May 19, 2025, to June 3, 2025, including those investors who acquired shares during the SPO held on May 21, 2025. The lawsuit suggests that Sable Offshore's press release on May 19 claimed a resumption of oil production, a contention that was quickly refuted by California's Lieutenant Governor, Eleni Kounalakis. In a pointed letter, Kounalakis clarified that the company was only conducting “well-testing procedures” and had not genuinely resumed production, as suggested in its announcement.

The fallout from this misleading statement became evident on May 28, 2025, when the public learned of Kounalakis’s letter, leading to a significant stock price drop of more than 15%. The company faced further challenges when a Santa Barbara County Superior Court judge imposed a temporary restraining order on June 4, forbidding Sable from transporting oil through the Las Flores Pipeline System. This order resulted in a further decline in Sable’s stock valuation.

As the lawsuit unfolds, it seeks to hold both Sable Offshore and its underwriters accountable for allegedly raising capital based on these deceptive claims, which the plaintiff argues led to material losses for investors. Hagens Berman has stated its commitment to investigating these claims thoroughly, with partner Reed Kathrein leading the charge. Kathrein remarked, “We are examining whether the company’s claims regarding oil production and the resulting legal intervention were part of a broader attempt to mislead investors and ultimately caused them significant financial harm.”

Investors who believe they have incurred losses due to the actions of Sable Offshore are encouraged to reach out to Hagens Berman to aid in the investigation and potentially join the class-action lawsuit. The firm advises that whistleblowers possessing non-public information relevant to this case consider their options for contributing to the ongoing investigation or could take advantage of the SEC Whistleblower program. Under this initiative, whistleblowers providing original information could earn rewards amounting to up to 30% of any successful recovery made by the SEC.

For more details regarding the lawsuit and to learn how to participate, interested parties should visit Hagens Berman’s website or contact the firm directly via email at [email protected] or through the phone number 844-916-0895.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is a nationally recognized plaintiff's rights law firm, concentrating on complex litigation that holds corporations accountable for their actions. The firm has an established track record of securing over $2.9 billion for its clients in various cases of corporate wrongdoing. Further information regarding Hagens Berman and its successes can be found on their official website.