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CIVI.US
id: 1586

Civitas Resources ($CIVI) Misleading Growth Claims and Production Decline Case

Investors can submit applications for the lead plaintiff role.
D. New Jersey
Court
2:25-cv-03791
Case number
02/27/2024
Class period Start
02/24/2025
Class period End
07/01/2025
Lead Plaintiff motion deadline
  • $CIVI investors filed a claim against Civitas Resources for hiding signs of slowing oil production and failing to warn about major operational changes.
  • After revealing a surprise drop in 2025 oil output and announcing job cuts, $CIVI fell over 18% on February 25, 2025.
  • $CIVI investors can join this case to be notified about potential recovery.
Case Details:

Throughout 2024, Civitas Resources told investors that oil production was steady, its recent acquisitions were paying off, and the company was on track for strong growth. Executives said output would rise during the year and gave no indication of any internal problems.

But behind the scenes, Civitas had already started slowing down its drilling activity. By the end of the year, the company had stopped bringing new wells online and was planning a shift in strategy — including job cuts, asset sales, and another acquisition to offset production declines. None of this was shared with investors at the time.

Then, on February 24, 2025, Civitas reported fourth-quarter earnings and dropped a series of unexpected updates: it said 2025 oil production would fall by 4%, it was laying off 10% of its workforce, and it had just fired its COO and CTO. The company also revealed a new $300 million acquisition and a plan to sell off older assets.

After this update, $CIVI dropped 18.15% on February 25, 2025.

Based on these events, $CIVI investors filed a claim against Civitas Resources, saying the company:
  • It misled shareholders by hiding a planned slowdown in oil production.
  • It gave overly optimistic forecasts while quietly preparing for layoffs and a strategy shift.
Investors believe Civitas wasn’t honest about its challenges and made sudden moves that caught the market off guard.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements
Financial Misrepresentation
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02/24/2025
Filing date
05/02/2025
Lead Plaintiff Deadline
07/01/2025

Civitas Resources Inc

Civitas Resources, Inc., an exploration and production company, focuses on the acquisition, development, and production of crude oil and associated liquids-rich natural gas. Its assets include DJ B...

    Ticker
    CIVI.US
    ISIN
    US17888H1032
    CIK
    0001509589
    Sector
    Energy
    Industry
    Oil & Gas E&P
    Country
    USA
    Address
    555 17th Street, Denver, CO, United States, 80202