Recovery of NuStar Energy LP Investment Losses

Investigation of NuStar Energy LP update 3/11/20

Have you suffered losses investing in NuStar Energy LP?   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.

NuStar Energy L.P. transports and stores crude oil and refined products. The Company operates pipelines, terminals, and oil storage facilities. NuStar operates in North America, Latin America, the Caribbean, the United Kingdom, and continental Europe.

Unfortunately for investors, most oil and gas MLPs are down substantially in the last year. According to Yahoo Finance on March 11, 2020, in the past 12 months, the share price of NuStar Energy LP has reportedly declined 60%.

Master Limited Partnerships (MLPs), like NuStar Energy LP 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 publically 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.

Risks of Master Limited Partnerships

MLPs have increasingly been used to invest in the energy sector and are often sold to investors seeking income.  However, MLP’s 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 MLPs, like NuStar Energy 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.

Recovery of Investment Losses

If you suffered losses investing NuStar Energy LP or another 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 Franklin, Tennessee.  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.