Pomerantz Law Firm Files Class Action Against Civitas Resources, Focusing on Securities Violations

Class Action Lawsuit Filed Against Civitas Resources, Inc.



On June 22, 2025, Pomerantz LLP, a renowned law firm specializing in class action litigation, announced the filing of a class action lawsuit against Civitas Resources, Inc. (NYSE: CIVI) and several of its executives. This legal action is set within the United States District Court for the District of New Jersey, under docket number 25-cv-03791, and it specifically targets individuals and entities who acquired Civitas securities from February 27, 2024, to February 24, 2025, during what is referred to as the “Class Period.” The lawsuit seeks compensation for damages incurred by the plaintiffs, alleging that Civitas violated federal securities laws.

Investors who acquired Civitas securities during this timeframe are encouraged to take action; they have until July 1, 2025, to petition the court to designate them as Lead Plaintiffs in this class action. Interested parties can access the formal Complaint on the Pomerantz Law Firm's website.

Background on Civitas Resources



Civitas Resources is a company engaged in the exploration and production of crude oil and liquids-rich natural gas, with operational interests primarily in the Denver-Julesburg (DJ) Basin of Colorado and the Permian Basin that spans Texas and New Mexico. As of December 31, 2024, Civitas maintained a working interest across a total of 530,200 acres.

The company generates revenue through the sale of produced crude oil, natural gas, and natural gas liquids. Thus, sustaining a high volume of oil production is pivotal for its financial growth. In 2024, Civitas showcased a consistent oil production rate and ramped up its number of operational drilled wells, known as turned-in-lines (TILs). However, unbeknownst to stakeholders, the oil production rates in the DJ Basin experienced a decline by the fourth quarter of 2024, coinciding with a reduction in the introduction of new operational lines.

Allegations Against Civitas



The Complaint details accusations that throughout the Class Period, Civitas's executives issued materially false statements about the company’s business practices, operational realities, and future prospects. Specifically, the claims suggest that:
1. Civitas was likely to face a significant reduction in oil production in 2025, which stemmed from the production peak reached in the DJ Basin during the last quarter of 2024.
2. To boost production, the company would need to acquire additional development locations—likely resulting in substantial debt and requiring asset sales to balance costs.
3. Civitas’s financial circumstances would necessitate impactful cost-cutting measures, including significant workforce reductions.
4. The overall business and financial outlook for Civitas was overstated, which meant previous public statements made by the company were misleading.

On February 24, 2025, Civitas disclosed its financial results for late 2024, with a revenue of $1.29 billion, which was below market expectations by $3.44 million. The non-GAAP earnings per share also fell short of analyst predictions. Additionally, the company reported a net income of $151.1 million for the quarter—down significantly from $302.9 million during the same period the previous year.

The disappointing results prompted a series of announcements from Civitas, including a new outlook for 2025 aimed at maximizing free cash flow. This outlook included projections of declining oil production rates and plans for asset divestments totaling $300 million to finance their operations.

Market analysts have expressed concern over the company’s lowering 2025 production forecasts and reacted swiftly to the disappointing performance, with KeyBanc Capital Markets downgrading Civitas’s stock from ‘Outperform’ to ‘Sector Perform’ due to the negative outlook.

Conclusion



Pomerantz LLP stands at the forefront in representing investors affected by potential securities fraud. With over 85 years of fighting for victims of corporate malpractice, the firm continues to advocate for accountability in the business world. Should you wish to discuss the class action or possess pertinent information regarding Civitas, you may reach out to Danielle Peyton at Pomerantz.

For further details and to review the Complaint and the class joining process, you can visit Pomerantz Law Firm's website.

Topics Financial Services & Investing)

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