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Concho Resources Inc. Class Action Lawsuit - CXO

Company Name
Concho Resources Inc.
Stock Symbol
CXO
Class Period
February 21, 2018 to July 31, 2019
Court
Southern District of Texas

Case Summary

The Concho Resources class action lawsuit charges Concho Resources Inc. (NYSE: CXO) and certain of its top executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Concho Resources common stock between February 21, 2018 and July 31, 2019, inclusive (“Class Period”).  The Concho Resources class action lawsuit was commenced on July 30, 2021 in the Southern District of Texas and is captioned City of Warwick Retirement System v. Concho Resources Inc., No. 21-cv-02473.

If you wish to serve as lead plaintiff of the Concho Resources class action lawsuit, please provide your information by clicking here.  You can also contact attorney Michael Albert of Robbins Geller by calling 800/449-4900 or via e-mail at malbert@rgrdlaw.com.  Lead plaintiff motions for the Concho Resources class action lawsuit must be filed with the court no later than September 28, 2021.

CASE ALLEGATIONS: In 2018, Concho Resources planned and constructed the Dominator Project in the Delaware Basin, consisting of 23 wells.

The Concho Resources class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) the well spacing at the Dominator Project was aggressive and highly risky, and premised on no reasonable basis to believe it would work as intended; (ii) Concho Resources’ 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; (iii) it was known or recklessly disregarded that any measures to mitigate well spacing risks were non-existent and or/impossible; (iv) these risks had manifested during the Class Period, causing underground well interference and permanently decreasing production, forcing Concho Resources to scale back production targets and adopt more conservative spacing measures in its other projects; (v) it would take multiple quarters to unwind the impacts of the widespread well spacing failure; and (vi) as a result of the foregoing, Concho Resources’ public statements were materially false and misleading at all relevant times.

On July 31, 2019 and during the following trading day on August 1, 2019, Concho Resources revealed the wells at the Dominator Project were spaced “too tight.”  As a result, Concho Resources disclosed that it had drastically reduced its total active rig count to avoid overshooting budgets and would be forced to scale down production targets for the rest of the year.  Concho Resources also disclosed that moving forward, the company would begin spacing all of its wells farther apart – revealing at the same time that certain current and upcoming projects were “moderately more dense” in terms of spacing.  On this news, the price of Concho Resources’ shares fell approximately 22%, damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Concho Resources common stock during the Class Period to seek appointment as lead plaintiff in the Concho Resources class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Concho Resources class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Concho Resources class action lawsuit.  An investor’s ability to share in any potential future recovery of the Concho Resources class action lawsuit is not dependent upon serving as lead plaintiff. 

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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