Meramec Rich Royalties LLC Investor Lawsuits
Are you concerned about your investment in Meramec Rich Royalties LLC?
The White Law Group is investigating potential securities claims involving broker dealers who may have unsuitably recommended Meramec Rich Royalties LLC to investors.
Resource Royalty LLC “utilizes the real estate approach to energy investing by structuring highly strategic and diversified mineral and royalty investment portfolios for accredited investors,” according to its website.
According to filings with the SEC, the company filed a form D to raise capital for investors for the offering Meramec Rich Royalties LLC in 2018. The offering amount was purportedly $15,200,000, with sales fees and commissions estimated at close to 8% of the total offering amount.
Oil and gas limited partnerships or drilling programs are complex, high-risk investments. Many of these programs have high expense ratios, and if the overall health of the oil and gas market declines, it could default, or worse yet, file for bankruptcy. Such an outcome is extreme, but not unforeseen. It only highlights the unsuitability of these investments for most retail investors – particularly in large concentrations.
The White Law Group is investigating the liability that brokerage firms have for recommending high-risk oil and gas programs. The firm has handled a number of claims involving drilling programs over the years.
In those claims, the firm has alleged, among other things, that the investments were (1) high-risk and unsuitable for our clients given their financial situation, needs and investment objectives, (2) that the risks of the investment were not fully disclosed to them, and (3) that the brokerage firms that sold the investments failed to conduct the proper due diligence with respect to the investments (as the firms are required to do by FINRA Rules).
The Risks of Oil and Gas Limited Partnerships
The problem with oil and gas limited partnerships is they are exempt from registration with the SEC and lack the same regulatory oversight as other investment products. These types of limited partnerships often lack liquidity. The often come with high commission fees that are often 3-4x higher than more traditional investments, like mutual funds or bonds.
For more information on The White Law Group’s Investigation see,
Oil and Gas Private Placements – Securities Fraud Lawsuits Investigation
Recovery of Investment Losses
If you invested in a Meramec Rich Royalties LLC offering 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, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors in FINRA arbitration claims throughout the country. Visit the homepage to learn more about the firm.
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