SOC Update: Lawsuit Alleges Sable Offshore Misled Investors on Oil Production – Hagens Berman

Core Viewpoint - A class-action lawsuit has been filed against Sable Offshore Corp. for allegedly misrepresenting its oil production status, leading to significant investor losses during a specific period in 2025 [1][2]. Allegations and Regulatory Scrutiny - The lawsuit claims that Sable Offshore and its SPO underwriters misled investors by stating that oil production had resumed off the California coast, which was contradicted by California Lieutenant Governor Eleni Kounalakis, clarifying that the activities were merely "well-testing procedures" [2]. - Following the revelation, Sable Offshore's stock price dropped over 15% on May 28, 2025 [2]. Judicial Intervention and Further Stock Drop - On June 4, 2025, Sable Offshore disclosed a temporary restraining order from a Santa Barbara County Superior Court judge, preventing the company from restarting oil transportation through the Las Flores Pipeline System, which further impacted the stock price negatively [3]. Litigation Context - The lawsuit, Johnson v. Sable Offshore Corp., is being litigated in the U.S. District Court for the Central District of California, aiming to hold the company accountable for allegedly raising capital under false pretenses [4]. Investigation by Hagens Berman - Hagens Berman is investigating claims on behalf of investors who experienced substantial losses, suggesting that the press release may have been a tactic to inflate stock prices prior to the secondary offering [5]. - The firm encourages whistleblowers with non-public information regarding Sable Offshore to come forward, highlighting potential rewards under the SEC Whistleblower program [5].