January 15, 2016 Comments (0) Blog

Securities Investigation involving PVR Partners LP

Noble Royalty Access Fund VII
(Last Updated On: February 13, 2017)

PVR Partners LP Investment Losses

Have you suffered losses investing in PVR 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.

PVR Partners, L.P. gathers and processes natural gas; and manages coal and natural resource properties in the United States. Its Eastern Midstream segment provides natural gas gathering, transportation, and other related services in Pennsylvania, Ohio, and West Virginia; and owns membership interests in a joint venture that transports fresh water to natural gas producers. As of December 31, 2013, this segment owned approximately 257 miles of natural gas gathering pipelines, 68 miles of natural gas trunkline pipelines, and 42 miles of fresh water pipelines.

Master Limited Partnerships (MLPs), like PVR 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.

Risks of Master Limited Partnerships

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 PVR 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 PVR 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 Vero Beach, Florida.  The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.

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