Faruqi & Faruqi Warns Civitas Investors About Class Action Deadline Approaching Soon

Faruqi & Faruqi Reminds Civitas Investors of Pending Class Action

Faruqi & Faruqi, LLP, a prominent national securities law firm, has issued a reminder to investors of Civitas Resources, Inc. regarding the critical deadline for the lead plaintiff in a pending federal class action lawsuit against the company. This crucial date falls on July 1, 2025, and investors suffering losses exceeding $100,000 are encouraged to reach out to the firm for guidance.

The allegations against Civitas revolve around claims that the company, along with its executives, engaged in behavior violating federal securities laws. Specifically, these actions included making misleading statements and failing to disclose significant factors that could adversely affect the company’s financial stability. These factors are detailed as follows:

1. Production Reduction: There is a serious concern that Civitas is poised to sharply decrease oil production in 2025. As noted, this anticipated cut results from declines that are likely to follow the peak production levels achieved in the DJ Basin during the fourth quarter of 2024.

2. Debt Accumulation: To maintain or increase oil production levels, Civitas would need to acquire more acreage, which could lead to substantial debt. This scenario forecasts a potential need for selling company assets to cover acquisition costs, further complicating the firm’s financial landscape.

3. Workforce Reduction: The financial health of Civitas necessitated drastic cost-saving measures, including significant layoffs that prompted a 10% reduction in its workforce as of February 2025. This reduction was unveiled along with the announcement of crucial leadership changes, such as the termination of key executives, which raised concerns among investors.

4. Market Reactions: Following the negative news on February 24, 2025, when Civitas reported its fourth-quarter results, the company's stock plummeted by 18.2%, indicating that investors were significantly impacted by these revelations. This stock drop was attributed to the company's failure to meet the consensus revenue and earnings expectations.

The lead plaintiff is essential in the class action case, as they serve a vital role in overseeing the litigation for all investors involved. Those affected can choose to apply for this role through their legal representatives or can remain class members without any adverse effects on their eligibility for recovery.

Faruqi & Faruqi is also welcoming information from whistleblowers, former employees, and other parties who may have crucial insights into Civitas' actions. Anyone interested in participating in this class action or seeking to understand their legal rights is encouraged to visit Faruqi Law's website for more details or to contact Josh Wilson, a partner at the firm. Investors can reach out directly at 877-247-4292 or 212-983-9330 (Extension 1310).

As the deadline approaches, it is critical for affected Civitas investors to take swift action to ensure they can adequately pursue compensation and support during these troubling times. Faruqi & Faruqi has a solid history of recovering significant funds for investors, showcasing their commitment to protecting the rights of those who may have fallen victim to securities fraud. Stay informed and connected on updates via the firm’s social platforms, including LinkedIn and Facebook.