In a dramatic turn of events, Civitas Resources, Inc. finds itself at the center of a class action lawsuit that could have significant implications for its shareholders. The lawsuit, filed against the company, alleges that Civitas misled investors about its production capabilities and financial health, potentially causing substantial losses for those who invested between February 27, 2024, and February 24, 2025.
The crux of the allegations points to a series of misleading public statements made by Civitas. The company is accused of overstating its business prospects and operational capabilities. It was reportedly on the brink of a significant reduction in oil production due to a decline following the production peak at the DJ Basin and a low TIL count at the end of 2024. To counter this, Civitas would need to acquire more acreage and development locations, inevitably leading to increased debt and the necessity to sell corporate assets. Furthermore, the company’s financial condition was such that it had to consider disruptive cost-cutting measures, including a significant reduction in its workforce.
For investors who have suffered losses during this period, there is a pathway to seek recovery. Affected shareholders are encouraged to visit the provided link to understand their rights and the steps they can take to potentially recover their losses. Importantly, there is no cost or obligation to participate in this legal action.
The lawsuit is spearheaded by Levi & Korsinsky LLP, a firm with a formidable reputation in securities litigation. With over 20 years of experience and a track record of securing hundreds of millions of dollars for shareholders, the firm is well-equipped to handle this complex case. Their expertise and commitment to their clients have earned them a spot in the ISS Securities Class Action Services’ Top 50 Report for seven consecutive years.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171