LOS ANGELES, September 24, 2021--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming September 28, 2021 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Concho Resources Inc. ("Concho" or the "Company") (NYSE: CXO) common stock between February 21, 2018 and July 31, 2019, inclusive (the "Class Period").
If you are a shareholder who suffered a loss, click here to participate.
In 2018, Concho planned and constructed the Dominator Project ("Dominator") located in the Permian Basin. It consisted of 23 wells.
On July 31, 2019, Concho revealed the wells at Dominator were spaced "too tight," leading the Company to reduce its active rig count to 18 (down from 33 in the first quarter of 2019) to avoid overshooting budgets.
On this news, Concho’s stock price fell 22% per share on August 1, 2019, thereby injuring investors.
ConocoPhillips (NYSE: COP) acquired Concho in January 2021 and is also named as a defendant in the complaint.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the well spacing at Dominator was aggressive and highly risky, and premised on no reasonable basis to believe it would work as intended; (2) Concho's practice of implementing tighter well spacing was not relegated to a handful of "tests" and therefore more widespread than the market was led to believe; (3) it was known or recklessly disregarded that any measures to mitigate well spacing risks were non-existent and or/impossible; (4) these risks had manifested during the Class Period, causing underground well interference and permanently decreasing production, forcing the Company to scale back production targets and adopt more conservative spacing measures in its other projects; (5) it would take multiple quarters to unwind the impacts of the widespread well spacing failure; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired Concho securities during the Class Period, you may move the Court no later than September 28, 2021 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210924005009/en/