Did you take a hit investing in Milagro Oil & Gas? 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.
According to their website, Milagro Oil & Gas is an independent oil and natural gas company based in Houston, Texas. The company primarily engages in exploitation, development and production activities in the Gulf Coast region.
The deflated energy prices have caused havoc for many companies, including Milagro Oil & Gas. In March, Milagro Oil & Gas Resources filed for chapter 11 bankruptcy. According to The Wall Street Journal,”The Houston company has an agreement with major creditors that calls for it to swap its oil and gas assets to White Oak Resources VI LLC in exchange for $120 million in cash plus about $97 million in equity in White Oak.”
It is unclear what the bankruptcy will do to the interests of equity and bond investors in Milagro but it certainly appears that these investments are in peril.
Unfortunately, many investors were not made adequately aware of the risks associated with energy investments. Oil and gas investments are generally speculative and can be very high risk ventures. They are arguably 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, your broker has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine if the investment is suitable for the investor. Brokers that fail to perform the necessary due diligence prior to recommending them to clients could be liable for investment losses.
To determine whether you may be able to recover investment losses incurred in Milagro Oil & Gas please contact The White Law Group at (312)238-9650.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. Visit our homepage to learn more about the firm.