Concho Resources Inc. (Successor-in-interest ConocoPhillips)

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(1) the well spacing at Dominator 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 the Company 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, the Company’s public statements were materially false and misleading at all relevant times.