Energy 11 LP Update – Investigating Potential Claims

Updated on January 28, 2021 – Recovery of Investment Losses, David Lerner and Associates’ Energy 11 LP

Are you concerned about your investment losses in Energy 11 LP? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

According to its prospectus, Energy 11, L.P. Energy 11, LP was formed in 2013 by the owners of the Apple REITs and two others, to enable investors to invest in oil and gas properties located onshore in the United States.

The offering period for purchasing units of Energy 11, LP began on January 22, 2015 and concluded on April 24, 2017. At the conclusion of the offering period, David Lerner Associates had raised $374,322,962, according to the company. The original offering price was $19 and $20 per unit. 

Update on January 28, 2021 – Deep Decline in  Share Value

According to an 8-K filing on January 25, 2021, the Partnership is providing an estimated per common unit value of the Partnership’s common units as of December 31, 2020 of $7.23 per common unit. Unfortunately for investors this indicates a more than 50% decline in value.

The problem with oil & gas investments such as Energy 11 LP is that they typically involve a high degree of risk. Further, due to COVID-19’s impact on  the global economy, there was a steep decline in demand for oil and natural gas during the first quarter of 2020, and demand has not fully recovered to pre-COVID-19 levels.

According to a letter to investors, the company said that the impact of COVID-19 to the Partnership’s revenues and cash flow from operations has been significant. 

Filing a Complaint against your Brokerage Firm

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for unsuitably recommending high-risk oil & gas investments, like Energy 11 LP to investors.

Brokerage firms are required to perform due diligence on any offering they recommend and to ensure that all recommendations made are suitable in light of the client’s age, investment experience, net worth, income, and investment objectives.

If a firm fails to perform due diligence or makes an unsuitable recommendation, the broker-dealer can be held responsible for any losses in a FINRA arbitration claim.

FINRA can help resolve problems and disputes through two non-judicial proceedings: arbitration and mediation. FINRA’s Dispute Resolution forum handles nearly all of the securities-related arbitrations and mediations in the United States.

If you have concerns regarding your investment in Energy 11 LP and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.