Sable Offshore Corp. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Sable Offshore Corp. (SOC).

If you purchased or held Sable Offshore securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Sable Offshore

Sable Offshore Corp. is an independent oil and gas company headquartered in Houston, Texas. The company operates three offshore platforms in federal waters off the coast of California and manages 16 federal leases spanning about 76,000 acres. Sable Offshore also owns and operates subsea pipelines that transport crude oil, natural gas, and produced water to onshore processing facilities (company profile).

The company was incorporated in 2020 and was formerly known as Flame Acquisition Corp. before adopting the Sable Offshore name in February 2024. Sable Offshore is publicly traded on the New York Stock Exchange under the ticker symbol SOC (company profile). The leadership team includes CEO James C. Flores, President J. Caldwell Flores, and CFO Gregory D. Patrinely (board of directors).

The Allegations

Sable Offshore is under investigation for allegedly making misleading statements and omitting material information regarding its operational stability and regulatory compliance in the months leading up to a dramatic stock price collapse in April 2025. Management had publicly assured investors of "steady production levels" and no anticipated major disruptions for 2025 as recently as the Q4 2024 earnings call in February 2025 (earnings call).

However, on April 3, 2025, Sable Offshore’s stock fell 17.28%, followed by an additional 14.94% drop the next day, resulting in a cumulative loss of approximately 29% over two days (stock price history). This sharp decline was triggered by disclosures of a catastrophic mechanical failure that halted production at a core offshore platform, which was projected to cost $50 million in second quarter revenue. At the same time, the California Coastal Commission imposed an $18 million fine on Sable Offshore for unpermitted pipeline work and issued cease-and-desist orders, further compounding the negative impact (CalMatters, Santa Barbara Independent).

These operational and regulatory setbacks seemingly contradicted management’s earlier public statements about the company’s readiness and regulatory progress. In March 2025, CEO Flores had reassured investors of imminent restarts and strong operational standing (earnings call). The subsequent events revealed that key risks had not been disclosed or had been materially understated.

Sable Offshore’s public filings also show significant net losses ($617.3 million in 2024 and $109.5 million in Q1 2025), liquidity stress, and missing internal control attestations, such as the absence of a SOX 404(b) audit (SEC filings).

There were also notable insider and institutional transactions around the period of investor losses. Pilgrim Global ICAV, a major shareholder, sold $3.65 million in stock just days before the critical stock drops, and executives and directors were awarded substantial new options immediately after the declines (insider trades). Short interest rose by 33%, and trading volumes spiked in response to the April events, indicating a strong market consensus about increased risk and loss of confidence (stock price history).

Regulatory scrutiny intensified as the California Coastal Commission imposed the record $18 million fine and issued additional cease-and-desist orders for unpermitted construction work on oil pipelines (Santa Barbara Independent). Sable Offshore has a history of settling prior class actions and continues to face various property and environmental lawsuits (SEC filings).

The alleged harm to investors is clear: Sable Offshore shares dropped from $26.21 on April 2 to as low as $16.61 by April 8, a loss of nearly $10 per share (about 38%) in less than a week (stock price data). The company’s market capitalization dropped by nearly $1 billion during this period.

Potential claims may arise under federal securities laws, including Section 10(b)/Rule 10b-5 and Sections 11/12(a)(2), for allegedly false and misleading statements and omissions regarding operational readiness, regulatory compliance, and liquidity risks (SEC filings).

Your Rights and Next Steps

This is an active investigation by Shamis & Gentile P.A. into whether Sable Offshore and its executives may have violated federal securities laws by making allegedly false or misleading statements or omitting key information that was material to investors. If the investigation uncovers sufficient evidence, it could lead to a class action lawsuit seeking to recover losses for affected shareholders.

Investors who purchased or held Sable Offshore securities and experienced financial harm during the relevant period may have the right to participate in any potential class action that results from this investigation. Participation typically does not require any upfront cost and does not obligate investors to take further action unless they choose to do so.

Lawyers are ready to help evaluate individual circumstances and guide investors through the process. It is important for investors to keep all records of their Sable Offshore transactions and communications, as these may be relevant to any potential claims.

You May Be Entitled to Compensation

Securities investigations are time-sensitive. Investors who purchased or held Sable Offshore securities and suffered losses may be eligible to join any potential class action and seek compensation for their damages. To protect their rights and maximize potential recovery, investors are encouraged to complete the form below to join the investigation.