BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been 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”). Concho investors have until September 28, 2021 to file a lead plaintiff motion.
Investors suffering losses on their Concho investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
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.
If you purchased Concho securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.