Sheridan Production Co. & Affiliates – Files Chapter 11 Bankruptcy Protection

Have you suffered losses investing in Sheridan Production Co. offerings? If so, the securities attorneys at The White Law Group may be able to help you recover your losses through FINRA Dispute Resolution.

Sheridan Production Co., based in Houston, reportedly manages assets with aggregate production of over 30,000 Barrels per day across Texas, New Mexico, Oklahoma and Wyoming.

On Sept. 15, 2019, Sheridan Holding Company II, LLC and eight affiliated debtors filed for Chapter 11 bankruptcy. The plan of reorganization was reportedly approved and became effective on Jan. 17, 2020.

The trouble with alternative investment products is that they involve a high degree of risk. They 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. The energy market has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities. These investments may seem wise at first, until the dramatic drop in distributions.

The White Law Group continues to investigate potential claims involving broker dealers who may have improperly recommended Sheridan Production Partners offerings to investors. Specifically, the firm is investigating the following Sheridan offerings:

Sheridan Production Partners I-A LP
Sheridan Production Partners I-B LP
Sheridan Production Partners I-M LP
Sheridan Production Partners II-A, L.P.
Sheridan Production Partners II-B, L.P.
Sheridan Production Partners II-M, L.P.
Sheridan Production Partners III-A, L.P.
Sheridan Production Partners III-B, L.P.
Sheridan Production Partners III-M, L.P.

Investigating Potential Claims

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must 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.

High sales commissions and due diligence fees are an additional consideration. These high commissions and fees can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks.  They may 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. 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.

If you are concerned about your investment in a Sheridan Production Partners offering, 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.