APX Energy Investment Losses & Complaints
Investors who purchased private placements sponsored by APX Energy, LLC may have options to recover their losses through FINRA arbitration. The White Law Group is investigating potential complaints against the brokerage firms that recommended APX Energy offerings, including APX Drilling Partners and APX New Harmony Partners private placements, to determine whether those recommendations were suitable for the investors who purchased them.
About APX Energy, LLC
APX Energy, LLC is the managing general partner for a series of drilling partnerships. According to its website, APX Energy is an independent oil and gas exploration company that targets ready-to-drill projects in undeveloped areas, primarily in the Illinois Basin and other areas of the southern United States.
APX Energy Private Placement Offerings
APX Energy has raised capital for its projects through a series of Regulation D private placement offerings. These offerings are structured as oil and gas limited partnerships and are typically sold by brokerage firms in exchange for a large up-front commission, often 7-10% of the amount invested, along with additional “due diligence fees” that can range from 1-3%.
The Risks of Oil and Gas Private Placements
Alternative investment products like APX Energy’s private placements involve a much greater degree of risk compared to traditional investments such as stocks, bonds, or mutual funds. Interests in these partnerships are typically sold as unregistered securities and lack the same regulatory oversight as more traditional investment products. They are also highly illiquid, meaning investors may be unable to sell their interests even if they want to.
The high commissions brokers earn for selling private placements may give some brokers an incentive to recommend the product to investors for whom it is not suitable, or to downplay the risks involved. Broker-dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations and to ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience. A broker or brokerage firm that allegedly makes an unsuitable recommendation, or that allegedly fails to adequately disclose the risks of an investment, may be liable for the resulting losses.
APX Energy Offerings Under Investigation
The White Law Group is currently investigating potential claims involving the following APX Energy private placement offerings:
- APX New Harmony Partners-A LP
- APX New Harmony Partners-B LP
- APX New Harmony Partners-C LP
- APX New Harmony Partners-D LP
- APX New Harmony Partners-E LP
- APX New Harmony Partners-F LP
- APX Bellatorum Royalties 2020 LP
How to Recover APX Energy Investment Losses
If you purchased an APX Energy private placement and believe it was recommended to you without adequate disclosure of the risks involved, you may be able to pursue a claim against your brokerage firm through FINRA arbitration. To determine whether you may be able to recover investment losses incurred as a result of your purchase of an APX Energy offering, contact The White Law Group for a free consultation.
Frequently Asked Questions
What is APX Energy, LLC?
APX Energy, LLC is an oil and gas exploration company, based in Buffalo, New York, that sponsors private placement drilling partnerships, including the APX Drilling Partners and APX New Harmony Partners offerings.
Is there a lawsuit against APX Energy?
The White Law Group is not aware of a civil lawsuit against APX Energy at this time. The claims described on this page involve FINRA arbitration complaints against the brokerage firms that recommended these private placements to investors, not a lawsuit against APX Energy itself.
What are my options if I invested in an APX Energy private placement?
If your broker recommended an APX Energy offering without disclosing its risks or without regard for its suitability for your portfolio, you may be able to file a FINRA arbitration claim against the brokerage firm to recover your losses.
Contact The White Law Group
The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago and Seattle. To discuss your investment in APX Energy, APX Drilling Partners, or APX New Harmony Partners, contact The White Law Group at (888) 637-5510 or visit our contact page for a free consultation.
