Hyperdynamics Corp. Files Chapter 7 Bankruptcy Liquidation

Recover your Investment losses in Hyperdynamics Corp.

The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Hyperdynamics Corp. to investors.

Hyperdynamics (OTCQX: HDYN) is an emerging independent exploration company that is exploring offshore the Republic of Guinea for new sources of oil and gas, according to the website. It holds a 50% interest in and is the operator of a Concession covering approximately 5,000 square kilometers in partnership with South Atlantic Petroleum (SAPETRO).

Hyperdynamics and affiliated Debtor SCS Corporation filed for Chapter 7 protection with the U.S. Bankruptcy Court in the Southern District of Texas on December 28, 2017.

According to documents filed with the Court, “After any administrative expenses are paid, no funds will be available to unsecured creditors.”

Trouble with Reg D Private Placements

Hyperdynamics filed a Form D private placement to raise capital last year.

Regulation D private placement investments such as Hyperdynamics, are often sold as unregistered securities and lack the same regulatory oversight as more traditional investment products. Private placement investments generally involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds.

Some brokers may have downplayed the risks associated with alternative investments and misled investors into thinking that they are “safe” investment products.

The high sales commission brokers earn for selling interests in these type of investments may have provided some brokers with enough incentive to push the product to unsuspecting investors.

Broker dealers are required by law to perform adequate due diligence on all investment recommendations. They must 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.

If a broker makes an unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.

FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.

Free Consultation

If you are concerned about your investment in Hyperdynamics Corp. or another private placement investment The White Law Group may be able to help you.

For a free consultation with a securities attorney, please contact The White Law Group at 1-888-637-5510.

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 and Franklin, Tennessee. For more information on the firm, visit www.WhiteSecuritiesLaw.com.