#United States #New York #Pomerantz LLP #stock fraud #Civitas Resources

Pomerantz Law Firm Investigates Civitas Resources, Inc.

On March 11, 2025, Pomerantz LLP announced an investigation regarding potential claims by investors of Civitas Resources, Inc. (NYSE: CIVI). This inquiry may bring to light critical issues surrounding the company's business practices and its potential involvement in securities fraud.

Background on Civitas Resources

Civitas Resources, Inc., operating in the energy sector, focuses on oil and gas production. Recently, the company disclosed its financial results for the fourth quarter and the year 2024, indicating a downturn that resulted in some significant stock movement. Investors and analysts were particularly concerned as the reported revenue and non-GAAP earnings per share (EPS) did not meet market expectations, sparking scrutiny over the company's operations and management.

With the announcement of missing consensus estimates, Civitas also revealed a 10% reduction in its workforce, signaling a severe adjustment in its business strategy. Furthermore, the company terminated two of its key executives: Chief Operating Officer Hodge Walker and Chief Transformation Officer Jerome Kelly, effective immediately. These drastic measures raise questions regarding the company's future and whether investors were adequately informed about its financial health.

Impact on Stock Prices

Following this news, Civitas's stock price plummeted by $8.95 per share (18.15%), closing at $40.35 on February 25, 2025. This dramatic decline underscores the volatility investors face when a company fails to meet financial expectations and the subsequent implications of management changes.

Pomerantz's Role

Pomerantz LLP, a well-respected law firm with a long history in corporate, securities, and antitrust class litigation, is leading the investigation. Founded by Abraham L. Pomerantz, known as a pioneer in securities class actions, the firm fights vigorously for shareholders and has successfully secured multimillion-dollar settlements in past cases. With offices across major cities, including New York, Chicago, and London, Pomerantz is well-equipped to assist affected investors.

Danielle Peyton, a representative of Pomerantz, noted that any Civitas investors with concerns or who believe they may have experienced losses due to the alleged misconduct are encouraged to reach out. This opens a pathway for victims of potential securities fraud to seek justice and possibly recover losses sustained during their investment.

Conclusion

As the investigation unfolds, it highlights the crucial need for transparency and accountability from publicly traded companies. For Civitas Resources, this situation may represent a pivotal moment in its operational history, while investors await clearer communication regarding the company's future direction and the legal outcomes of this inquiry. Those invested in Civitas Resources are advised to remain vigilant and informed about changes within the company and the ongoing legal proceedings. To join the class action or seek further information, investors can contact Danielle Peyton at Pomerantz LLP directly.