A class action lawsuit was filed against Sable Offshore (SOC) by Levi & Korsinsky on July 28, 2025. The plaintiffs (shareholders) alleged that they bought SOC stock at artificially inflated prices between May 19, 2025, and June 3, 2025 (Class Period) and/or were traceable to the company’s secondary public offering (SPO) on May 21, 2025. Plaintiffs are now seeking compensation for their financial losses. Investors who bought Sable Offshore stock during that period can click here to learn about joining the lawsuit.
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Sable Offshore Corp., headquartered in Houston, is an independent upstream energy company dedicated to the sustainable development of the Santa Ynez Unit in federal waters off the coast of California.
The company’s claims about restarting oil production off the coast of California, along with its negligent preparation of the Prospectus related to the SPO, are at the heart of the current complaint.
Sable Offshore’s Misleading Claims
According to the lawsuit, Sable and two of its senior officers (the Defendants) repeatedly made false and misleading public statements throughout the Class Period. In particular, they are accused of omitting truthful information about the resumption of oil production off the California coast from SEC filings and related material.
During the Class Period, the defendants kept reiterating that the company had restarted production at the Santa Ynez Unit (SYU). For instance, in a press release, the company stated that as of May 15, 2025, Sable Offshore had restarted production at the SYU and had begun flowing oil production to Las Flores Canyon (LFC).
Furthermore, the company noted that on May 15, 2025, it had initiated the flow of oil production from six wells on Platform Harmony of the SYU to LFC at a rate of about 6,000 barrels of oil per day.
In the same press release, the CEO noted that Sable Offshore had successfully and responsibly achieved initial production at the SYU. He emphasized that well tests from Platform Harmony demonstrated the strong potential of the reservoir despite being dormant for a decade and expressed optimism about the company’s development plan and long-term outlook.
However, subsequent events (detailed below) revealed that the defendants had failed to inform investors about material issues concerning the restart of production at the SYU.
Plaintiffs’ Arguments
The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the company’s business practices and prospects during the Class Period. Importantly, the defendants are accused of misleading investors about the true prospects and future potential of oil production at the SYU.
The information became clear before the market opened on June 4, 2025, following a series of partial disclosures. On that day, Sable Offshore filed a current report with the SEC, stating that on June 3, 2025, a Santa Barbara County Superior Court Judge had granted emergency requests from plaintiffs in two lawsuits related to the resumption of oil production at the SYU.
The temporary restraining orders prevented Sable Offshore from restarting oil transportation through the Las Flores Pipeline System until a hearing on a possible preliminary injunction, scheduled for July 18, 2025. Sable added that it was reviewing its options in response to these initial rulings. SOC stock fell 17.6% on June 3, when reports began circulating about the orders, and dropped another 3.9% on June 4 after the company’s official announcement.
To conclude, the defendants failed to inform investors about the material issues related to restarting oil production and transportation at the SYU. Despite these issues, SOC stock has gained 6.3% over the past year.
