David Lerner Associates Energy 11 LP Investment Losses
Energy 11 LP Investors May Have Claims
The White Law Group is investigating potential securities claims on behalf of investors involving David Lerner Associates’ Energy 11 LP, a limited partnership that has faced significant financial difficulties and investor losses.
Although the company’s reported $45 million in unpaid distributions made headlines in 2023, many investors continue to experience losses and liquidity challenges. For those who purchased Energy 11 LP through David Lerner Associates, these problems may raise questions about whether the investment was suitable for their portfolios and whether the firm adequately performed due diligence before recommending the offering.
Background on Energy 11 LP
Energy 11 LP was formed in 2013 to invest in onshore oil and gas properties across the United States. According to SEC filings, the offering began in January 2015 and concluded in April 2017 after raising approximately $374 million—most of which was sold through David Lerner Associates.
The investment initially promised a 7% annual distribution, but payments were suspended in 2020 as oil prices collapsed during the COVID-19 pandemic. While partial payments later resumed, many investors still have not recovered the full value of their original investment. The most recent estimated per-unit value has declined dramatically from the original offering price of $19–$20 per unit to less than half that amount.
Concerns About Broker Due Diligence
Brokerage firms like David Lerner Associates are required under FINRA rules to conduct due diligence on investment products and ensure that all recommendations are suitable based on an investor’s risk tolerance, net worth, and investment objectives.
Non-traded limited partnerships and energy programs—like Energy 11 LP—often carry high risks, including lack of liquidity, limited transparency, and exposure to volatile commodity prices. If a broker or firm failed to fully disclose these risks or recommended the investment inappropriately, investors may be eligible to recover losses through FINRA arbitration.
How to Recover Losses in Energy 11 LP
Investors who purchased Energy 11 LP through David Lerner Associates may have legal claims to recover investment losses. The White Law Group has represented hundreds of investors in claims against brokerage firms involving complex, illiquid investments such as non-traded REITs, limited partnerships, and energy offerings.
If you suffered losses in Energy 11 LP or other proprietary products sold by David Lerner Associates, contact The White Law Group at 888-637-5510 for a free consultation with a securities attorney. To learn more about our recent FINRA claim involving David Lerner Associates, click here: David Lerner Associates, Inc.: Investor Lawsuit
You may also visit www.whitesecuritieslaw.com
Frequently Asked Questions
1. What is Energy 11 LP?
Energy 11 LP is a limited partnership launched by David Lerner Associates to invest in U.S. oil and gas properties. The investment has experienced significant declines in value and unpaid distributions.
2. Can I recover my losses from Energy 11 LP?
Possibly. If your financial advisor failed to perform adequate due diligence or recommended the investment without regard to your risk tolerance or objectives, you may be able to pursue recovery through a FINRA arbitration claim.
3. Why is David Lerner Associates under investigation?
The firm has faced multiple regulatory actions and investor complaints related to its sale of proprietary energy investments, including Energy 11 LP and Energy Resource 12 LP. These actions often allege unsuitable recommendations and inadequate disclosure of investment risks.
