Recovery of Investment Losses in Oil and Gas MLPs

Have you suffered losses investing in oil and gas MLPs?   If so, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.

Master Limited Partnerships (MLPs) are a type of limited partnership that is publicly traded. MLP’s receive the same tax benefits of a limited partnership combined with the liquidity of a publicly traded security. In order to be classified as an MLP the partnership must receive 90% of its cash flow from a “qualifying source” – such as real estate, natural resources or commodities.

MLPs have increasingly been used to invest in the energy sector and are often sold to investors seeking income.  However, oil and gas MLPs are extremely complex and risky, making them only suitable for wealthy, sophisticated retail investors or institutional investors.  They are also a dream product for Wall Street because of the fees they generate, which may cause unscrupulous financial advisors looking to maximize their own commissions to recommend them improperly.

It is for this reason that The White Law Group is investigating the liability that brokerage firms may have for recommending high risk oil and gas MLPs, like Westmoreland Resource Partners LP, to their clients.

Brokerage firms that sell oil and gas MLPs are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

With oil prices hovering below $40/barrel, oil and gas MLPs continue to suffer.

According to Bloomberg, here is the performance over the past year of a number of MLPs the securities attorneys of The White Law Group is investigating:

Of these, the worst performing MLPs appear to be Teekay Offshore Partners LP, Breitburn Energy LP, Crestwood Equity Partners LP, Emerge Energy LP, EV Energy Partners LP, Foresight Energy LP, Hi-Crush Partners LP, Legacy Reserves LP, Memorial Production Partners LP, Mid-Con Energy Partners LP, Natural Resource Partners LP, Navios Maritime Partners LP, New Source Energy Partners LP, and Southcross Energy LP – all down OVER 80% in the last year!

Free Consultation

If you suffered losses investing in an oil and gas MLP and would like to discuss your litigation options, please call The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.