Magellan Midstream Partners LP Investment Losses – Updated 3/19/20

Have you suffered losses investing in Magellan Midstream Partners 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.

Magellan Midstream Partners, L.P. is primarily involved in the storage, transportation, and distribution of refined petroleum products and ammonia. The Company’s asset portfolio includes a pipe line system serving the mid-continent region of the United States, petroleum products marine terminal facilities, petroleum products terminals, and an ammonia pipeline system.  The company is based in Tulsa, Oklahoma.

Master Limited Partnerships (MLPs), like Magellan Midstream Partners 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.

Unfortunately for investors , most oil and gas MLPs are down substantially in the last year.  After a rebound of stock prices in 2017, as of March 19, 2020, Magellan Midstream Partners LP is reportedly down 53% YTD.

Problem with Alternative Investments

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 Magellan Midstream 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.

Recovery of Investment Losses

If you suffered losses investing Magellan Midstream Partners 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.

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