Civitas Resources(US:CIVI) Prnewswireยท2025-06-15 14:10Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Civitas Resources, Inc. due to allegations of false and misleading statements regarding the company's financial health and operational capabilities, which have led to significant investor losses [2][4]. Group 1: Allegations Against Civitas - The complaint alleges that Civitas and its executives violated federal securities laws by failing to disclose a likely significant reduction in oil production for 2025, attributed to declines in production at the DJ Basin and a low TIL count [4]. - It is claimed that increasing oil production would necessitate acquiring additional acreage, leading to significant debt and asset sales to cover acquisition costs [4]. - The company's financial condition is said to require disruptive cost-reduction measures, including a substantial workforce reduction [4]. - As a result, Civitas's business and financial prospects were overstated, making public statements materially false and misleading [4]. Group 2: Financial Impact and Stock Performance - On February 24, 2025, Civitas reported fourth quarter and full year financial results that missed consensus estimates for revenue and non-GAAP EPS, alongside announcing a 10% workforce reduction and the termination of key executives [5]. - Following this news, Civitas's stock price dropped by $8.95, or 18.2%, closing at $40.35 per share on February 25, 2025, resulting in significant losses for investors [5]. Group 3: Legal Proceedings and Investor Actions - Investors who suffered losses exceeding $100,000 between February 27, 2024, and February 24, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal options [1]. - There is a deadline of July 1, 2025, for investors to seek the role of lead plaintiff in the federal securities class action against Civitas [2][6]. - The firm is also seeking information from whistleblowers, former employees, and shareholders regarding Civitas's conduct [7].