The White Law Group continues to investigate the liability that brokerage firms may have for recommending investments in oil and gas companies, including bond offerings.
The prolonged decrease in oil and gas prices has led to a number of bankruptcy this year. In August, Hercules Offshore filed a pre-packaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Hercules Offshore provides offshore contract drilling and liftboat services to the oil and gas industry. The company provides a range of services including oil and gas exploration and development drilling, well service, platform inspection, maintenance and decommissioning operations.
Oil and gas investments are generally speculative and high risk ventures. These types of investments are often better suited for sophisticated and institutional investors that can afford total loss of their investment. Even bonds in the oil and gas industry, which many investors think of as “safe,” are not without risk.
Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor. Unfortunately, brokerage firms sometimes fail to perform the necessary due diligence prior to recommending them to their clients.
To determine whether you may be able to recover investment losses incurred in Hercules Offshore please contact The White Law Group at 312-238-9650.