Concho Resources Inc

A securities class action has been filed against Concho Resources Inc. (CXO) on behalf of all persons or entities who purchased or otherwise acquired Concho common stock between February 21, 2018 through July 31, 2019.  This case has been filed in the USDC – S.D.TX.

Concho Resources Inc stock pricing from February 2018 to July 2019

According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the well spacing at the Dominator Project (“Dominator”), consisting of 23 wells in the Delaware Basin, part of the larger Permian Basin, 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 Concho 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 of the foregoing, defendants’ public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.