Civitas Resources, Inc. (NYSE: CIVI): Civitas Resources, Inc. (“Civitas” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Civitas securities. The case is pending in the U.S. District Court for the District of New Jersey and is captioned Lin v. Civitas Resources., et al., No. 25-cv-03791.
 
If you incurred losses on your investments in Civitas, you are encouraged to submit your information.
 
Why was Civitas Sued for Securities Fraud?
 
Civitas is an oil and gas exploration and production company with its key assets located in the Denver-Julesburg Basin in Colorado and the Permian Basin in Texas and New Mexico. The complaint alleges that Civitas stated that both basins had “enhanced recovery potential” and that it had “driven production ahead of plans,” while touting “enhanced margins through reduced operating costs” and insisting that “costs are below expectations.”
 
In truth, the Company’s oil production peaked in 2024, and increasing production would require Civitas to spend significant capital to acquire additional land, driving up costs.
 
The Stock Declines as the Truth is Revealed
 
On February 24, 2025, Civitas announced disappointing Q4 and full year 2024 results, and reduced its oil production guidance. The Company explained that oil production had peaked and it would need to spend hundreds of millions of dollars to acquire thousands of acres of new land to produce more oil. Civitas also announced that it was implementing a 10% reduction in its workforce to “solidify the Company’s low-cost structure.” On the same day, Civitas announced the immediate firings of its Chief Operating Officer and Chief Transformation Officer. On this news, the price of Civitas stock declined more than 18%, from a closing price of $49.30 per share on February 24, 2025, to $40.35 per share on February 25, 2025.
 
What are my Rights?
 
If you purchased or otherwise acquired Civitas securities, you may ask the Court no later than July 1, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
 
If you incurred losses on your investments in Civitas, you are encouraged to submit your information to speak with an attorney about your rights.
 
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
 
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
 
Why Bleichmar Fonti & Auld LLP?
 
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
 
Attorney advertising. Past results do not guarantee future outcomes.