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

NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, has announced that it has filed a class action lawsuit 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 individuals and legal entities who purchased or otherwise acquired Concho securities between February 2, 2018 and July 21, 2019 (the “Consolidation Period”). Investors have until September 28, 2021 to apply to the court for appointment as lead plaintiff in the litigation.

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On July 31, 2019, after close of trading, Concho released its financial results for the second quarter of 2019. On that day, the company announced that the 23 wells of the Dominator project were “too narrow” and Concho had already “locked in” learnings from [the Dominator Project] in its second half of 2019 program and future projects in the Delaware Basin. Concho also announced that it would be forced to cut production targets for the remainder of this year, including reducing the number of active rigs to 18 from 33 in the first quarter of 2019.

Based on this news, Concho declined 22% to close at $ 75.97 per share on August 1, 2019, up from its closing price of $ 97.68 per share on July 31, 2019.

The lawsuit alleges that throughout the class action period, defendants made false and / or misleading information and / or failed to disclose: (i) the well spacing on the Company’s Dominator project was aggressive and highly risky and was not based on any reasonable basis to believe it would work as intended; (ii) Concho’s practice of implementing closer borehole spacing has not been limited to a handful of “tests” and is therefore more widespread than the market believed; (iii) it was known or recklessly disregarded that measures to mitigate the risks of well spacing were not in place and / or impossible; (iv) these risks had manifested themselves during the class action period causing disruption to underground drilling and permanent decline in production, forcing the Company to cut production targets and take more conservative distance measures on its other projects; (v) it would take several quarters to mitigate the effects of widespread well spacing failures; and (vi) as a result of the foregoing, the Company’s public statements at all relevant times have been materially false and misleading.

If you have purchased or otherwise acquired Concho stock and have suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this release or your rights or interests in relation to these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at [email protected], by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.

About Bragar Eagle & Squire, PC:

Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents private and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.

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