According to the Complaint, Concho Resources Inc. ("Concho" or "the Company") was an independent oil and natural gas company engaged in the acquisition, development, exploration, and production of oil and natural gas properties, primarily in the Permian Basin of West Texas and Southeast New Mexico. In January 2021, ConocoPhillips acquired Concho in an all-stock transaction valued at $9.7 billion. ConocoPhillips is named in the Complaint as the successor-in-interest to Concho.

In 2018, Concho planned and constructed the Dominator Project (“Dominator”) in the Delaware Basin, part of the larger Permian Basin. Dominator, consisting of 23 wells, was incredibly large in scope. During the Class Period, Concho repeatedly touted to investors that the Company’s transition to large-scale development projects, including Dominator, generated cost savings, optimized resource recovery, and was designed to mitigate well-spacing risks.

The Complaint alleges that Defendants made materially false and misleading statements during the Class Period regarding the Company's business and financial prospects. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose 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 nonexistent 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, the Company's public statements were materially false and misleading at all relevant times.

On October 21, 2021, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed a Consolidated Complaint on January 7, 2022. Defendants filed a Motion to Dismiss the Consolidated Complaint on March 8. On June 23, 2023, the Court issued an Order granting the Motion to Dismiss for two of the individual Defendants and denying the Motion to Dismiss for the remaining Defendants.

Lead Plaintiffs filed a Motion for Class Certification on December 7, 2023. On March 7, 2025, the Court issued an Order granting in part and denying in part the Motion for Class Certification.