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Published June 6, 2025
Civitas Resources promised energy for the future — but now, it’s shareholders who are feeling burned out. After touting strong production in Colorado and Texas, the company’s stock dropped more than 18% overnight, falling to just over $40 per share. The reason? A financial report that struck a different tone — and now, investors are taking action with a class-action lawsuit against Civitas.
The lawsuit claims that throughout 2024, Civitas painted an overly optimistic picture of its oil and gas assets. While executives highlighted production growth, efficiency gains, and a healthy balance sheet, the complaint says they failed to disclose that oil output in the DJ Basin had already peaked. On top of that, the company was allegedly slowing down new well development — and would need to take on debt and sell off assets just to keep pace. Also left out of the conversation? A 10% workforce reduction.
When the truth emerged in February 2025, investors got a dose of financial whiplash. Revenue and earnings missed expectations, interest expenses soared past $450 million, and net income was cut in half compared to the prior year. Civitas’s stock price plunged by more than $8 per share, and the damage was done.
Now more investors are joining the lawsuit to hold Civitas accountable.