Sable Offshore Corp. (SOC) Hit With Lawsuit Over Alleged Misleading Statements on California Oil Restart - Hagens Berman

SAN FRANCISCO, Aug. 5, 2025 /PRNewswire/ -- Sable Offshore Corp. (NYSE: SOC) is now at the center of a securities class-action lawsuit, alleging that the company misled investors to inflate its stock price just before a major secondary offering. The drama unfolded around the company's long-delayed efforts to restart operations at its San Ynez Unit (SYU) assets, which have been dormant since a pipeline shutdown in 2015.

National shareholders rights firm Hagens Berman urges Sable investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

Class Period: May 19, 2025 – June 3, 2025
Lead Plaintiff Deadline: Sept. 26, 2025
Visit: www.hbsslaw.com/investor-fraud/soc
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Sable Offshore Corp. (SOC) Securities Class Action:

The suit claims that on May 19, Sable triggered a stock frenzy with a press release announcing it had "restarted oil production at SYU," a claim that sent its shares soaring by a remarkable 12.5% in a single day. Riding this wave of investor enthusiasm, the company quickly priced a secondary stock offering two days later, raising a substantial $256.5 million.

But the euphoria was short-lived. Just as the ink was drying on the offering, a letter from California's Lieutenant Governor, Eleni Kounalakis, allegedly surfaced that accused Sable of painting a deceptive picture. According to the complaint, the letter bluntly stated that the company's press release "appears to mischaracterize the nature of recent activities" and that the so-called "restart" was nothing more than "well-testing procedures required by the Bureau of Safety and Environmental Enforcement prior to restart." In a damning indictment, the letter is said to have declared, "Characterizing testing activities as a restart of operations is not only misleading but also highly inappropriate."

When the contents of this letter were reported in the financial press on May 28, the market delivered a swift verdict. Sable's stock price plunged over 15% the very next day, wiping out the gains that had enticed new investors just a week earlier.

The litigation now aims to hold the company accountable for what some are calling a calculated maneuver to raise capital under false pretenses. The case, Johnson v. Sable Offshore Corp., et al., is being litigated in the U.S. District Court for the Central District of California.

"We're investigating whether Sable may have misled investors about its restart progress and purported restart of SYU," said Reed Kathrein, the Hagens Berman partner leading the investigation.

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 [email protected].

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. 

SOURCE Hagens Berman Sobol Shapiro LLP