CONCHO ALERT: Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against Concho Resources Inc. and Encourages Investors to Contact the Firm
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Concho Resources Inc. ("Concho" or the "Company") (Other OTC: CXO) in the United States District Court for the Southern District of Texas on behalf of all persons and entities who purchased or otherwise acquired Concho securities between February 2, 2018 and July 21, 2019, both dates inclusive (the "Class Period"). Investors have until September 28, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
On July 31, 2019, after the close of trading, Concho released its financial results for the second quarter 2019. On this date, the Company revealed that the Dominator Project's 23 wells were spaced "too tight," and that Concho had already "incorporated learnings from [the Dominator Project] into its second half of 2019 program and future Delaware Basin projects." Concho also revealed that it would be forced to scale back production targets for the rest of this year, including by reducing its active rig count to 18, down from 33 in the first quarter 2019.
On this news, Concho sank 22% to close at $75.97 per share on August 1, 2019, down from the closing price of $97.68 per share n July 31, 2019.
The complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) the well spacing at the Company's Dominator Project was aggressive and highly risky, and premised on no reasonable basis to believe it would work as intended; (ii) 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; (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 the Company 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, the Company's public statements were materially false and misleading at all relevant times.
If you purchased or otherwise acquired Concho shares and suffered a loss, are a long-term stockholder, have information, 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 Brandon Walker, Melissa Fortunato, or Marion Passmore by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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