Have you suffered investment losses in Armada Oil? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
According to their website, Armada Oil, Inc. (OTCBB: AOIL), headquartered in Dallas, Texas, is a growth-oriented oil and gas Exploration and Production (E&P) company with a focus on growing reserves and net asset value per share, primarily through the acquisition, development and enhancement of multiple onshore oil and natural gas producing properties.
Haynes and Boone has tracked 90 North American oil and gas producers that have filed for bankruptcy since the beginning of 2015; Armada Oil and four affiliated Debtors filed for Chapter 7 protection with the U.S. Bankruptcy Court in the Eastern District of Texas, on August 28th, 2015.
Armada Oil is a Reg D private placement. The trouble with private placements, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. An additional risk inherent to these offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities.
The White Law Group is investigating the liability that brokerage firms may have for improperly selling oil and gas private placements like Armada Oil.
Broker dealers that sell private placements are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
However, another problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products sometimes can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments or to outright misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Armada Oil , please contact The White Law Group at 1-888-637-5510 for a free consultation.
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. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.Tags: Armada Oil Inc bankruptcy, Armada Oil Inc class action, Armada Oil Inc commissions, Armada Oil Inc complaint, Armada Oil Inc investigation, Armada Oil Inc lawsuit, Armada Oil Inc losses, Armada Oil Inc private placement, Armada Oil Inc recovery options, Armada Oil Inc risky Last modified: September 7, 2016