A lawsuit was filed on behalf of investors in Concho Resources Inc. (formerly NYSE: CXO) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 08/20/2021 -- An investor, who purchased shares of Concho Resources Inc. (formerly NYSE: CXO), filed a lawsuit over alleged violations of Federal Securities Laws by Concho Resources, Inc., ConocoPhillips, successor-in-interest to Concho Resources, Inc; and certain Concho Resources, Inc officers and directors.
Investors who purchased shares of Concho Resources Inc. (formerly NYSE: CXO) have certain options and for certain investors are short and strict deadlines running. Deadline: September 28, 2021. Concho Resources Inc. (formerly NYSE: CXO) investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Midland, TX based Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, development, and exploration of oil and natural gas properties in the United States.
In 2018, as part of Concho Resources Inc's transition to large scale oil and gas projects, Concho Resources Inc planned for, constructed, and began operation of the Dominator pad ("Dominator"), a 23-well formation located within the Permian Basin.
The plaintiff says that during this time, Concho Resources Inc repeatedly assured investors that its large-scale project development, including at Dominator, generated cost savings, optimized resource recovery, and was designed to mitigate well-spacing risks and that Concho Resources Inc also assured investors that its well spacing at Dominator was a unique density test.
The plaintiff claims that contrary to these statements, however, on July 31, 2019, after the close of trading, Concho Resources Inc shocked the market by revealing it had been forced to scale back production in the Permian Basin, attributing the disappointing news to problems caused by aggressively tight well spacing at Dominator and other projects.
On this news, Concho Resources Inc shares declined approximately 22 percent in a single day on August 1, 2019, erasing billions of dollars in the market value of Concho's shares.
On October 19, 2020, Concho Resources Inc. announced that they had entered into a merger agreement with ConocoPhillips. Under the terms of the transaction, each share of Concho Resources Inc. common stock will be exchanged for a fixed ratio of 1.46 shares of ConocoPhillips common stock. Based on ConocoPhillips' closing stock price on October 16, 2020, the implied stock consideration to be received by Concho Resources Inc's stockholders is $49.30 per share.
On January 15, 201, ConocoPhillips (NYSE: COP) announced that it has completed its acquisition of Concho Resources (formerly NYSE: CXO) following approval by shareholders of both companies.
The plaintiff claims that between February 21, 2018 and July 31, 2019, the Defendants made false and/or misleading statements and/or failed to disclose that the well spacing at Dominator was aggressive and highly risky, and premised on no reasonable basis to believe it would work as intended, that 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, that it was known or recklessly disregarded that any measures to mitigate well spacing risks were non-existent and or/impossible, that 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, that it would take multiple quarters to unwind the impacts of the widespread well spacing failure, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Concho Resources Inc. (formerly NYSE: CXO) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.