A newly filed class-action lawsuit targets Sable Offshore Corp. (NYSE: SOC) and its executives, alleging the company misrepresented its oil production status to investors. The litigation, filed in federal court in California, claims the company used a misleading press release to artificially inflate its stock price just before a secondary public offering (SPO).

Hagens Berman urges Sable investors who suffered substantial losses to submit your losses now.

Allegations of Misleading Statements and Regulatory Clash

The lawsuit, Johnson v. Sable Offshore Corp., represents investors who purchased Sable Offshore securities between May 19, 2025, and June 3, 2025, including those who bought shares in the May 21, 2025 SPO.

According to the complaint, Sable Offshore issued a press release on May 19, 2025, that claimed it had restarted oil production off the California coast. This statement was allegedly false and misleading. California Lieutenant Governor Eleni Kounalakis publicly challenged this claim, stating in a letter that the company’s press release appears to mischaracterize its activities. She clarified that the oil flows were merely well-testing procedures, not a resumption of commercial production.

Following the disclosure of the Lieutenant Governor's letter in the financial media on May 28, 2025, Sable Offshore’s stock price fell more than 15%, as the market realized the company's statements were not accurate.

Further Judicial Intervention and Stock Drop

The lawsuit further alleges that the company's legal troubles deepened on June 4, 2025, when Sable Offshore disclosed that a Santa Barbara County Superior Court judge had issued a temporary restraining order. This order prohibited the company from restarting oil transportation through the Las Flores Pipeline System, pending a hearing on a preliminary injunction. This news reportedly caused the stock to fall even further.

The litigation seeks to hold the company and its underwriters accountable for allegedly raising capital under false pretenses, causing significant losses for investors.

Hagens Berman’s Investigation

Hagens Berman is investigating these claims on behalf of investors who have suffered substantial losses.

Reed Kathrein, the Hagens Berman partner leading the investigation, commented on the situation, “Our investigation is centered on whether the company’s public statements accurately reflected the on-the-ground reality of its operations.”

If you invested in Sable and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the Sable case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Sable Offshore should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SOC@hbsslaw.com.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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