Civitas Resources(CIVI) Prnewswire·2025-06-06 13:59Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Civitas Resources, Inc. due to allegations of misleading statements and failure to disclose critical information regarding the company's financial and operational status [2][4]. Group 1: Allegations Against Civitas - The complaint alleges that Civitas and its executives violated federal securities laws by making false and misleading statements, including the likelihood of a significant reduction in oil production in 2025 [4]. - It is claimed that increasing oil production would necessitate acquiring additional acreage, leading to significant debt and asset sales [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 Performance and Market Reaction - On February 24, 2025, Civitas reported fourth quarter and full year financial results that missed consensus estimates for revenue and non-GAAP EPS [5]. - The company announced a 10% workforce reduction and the immediate termination of its Chief Operating Officer and Chief Transformation Officer [5]. - Following this news, Civitas's stock price dropped by 40.35 per share on February 25, 2025, resulting in investor losses [5]. Group 3: Legal Proceedings and Investor Actions - Investors who suffered losses in Civitas are encouraged to contact Faruqi & Faruqi to discuss their legal rights and options [1][2]. - 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].