February 2, 2016 Comments (0) Blog, Securities Fraud

Recovery of Ridgewood Energy Investment Losses

Noble Royalty Access Fund GP
(Last Updated On: October 12, 2017)

Investigation of Ridgewood Energy

Have you suffered losses in a Ridgewood Energy investment program? If so The White Law Group may be able to help you recover some of your losses through a claim against the brokerage firm that recommended the investment.

According to their website, Ridgewood Energy is a private equity firm focused on finding and developing oil and gas in deepwater Gulf of Mexico. The company s based in Houston, Texas and Montvale, New Jersey. In July 2015, Ridgewood Energy Oil & Gas Fund II was the largest fund to date with total capital commitments of more than $1.9 billion.

Many oil and gas LPs have high expense ratios, and due to the decline in the overall health of the oil and gas market, are suffering. Some are on the brink of default, or worse yet, 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.

Given the decline in the price of oil, it appears clear that recent offerings by Ridgewood Energy would be underperforming.

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 Ridgewood Energy. In those claims, the firm has alleged, among other things, that the Ridgewood Energy 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 failed to conduct the proper due diligence with respect to the Ridgewood Energy investments (as the firms are required to do by FINRA Rules).

Problems with Limited Partnerships

Some of the problems associated with oil and gas limited partnerships, like those offered by Ridgewood, include lack of liquidity and lack of regulatory oversight. Often these types of investments are exempt from registration with the Securities and Exchange Commission (SEC). They are also high risk investments generally intended for institutional and sophisticated investors.

Even more troubling is the high commission fees, often 3-4x higher than traditional investments like mutual funds or bonds, which unfortunately may entice some brokers to push these types of investments into the hands of unsuspecting investors.
Specifically, The White Law Group is investigating potential claims involving the following Ridgewood Energy offerings:

Ridgewood Energy Bluewater Institutional Fund, LLC
Ridgewood Energy Bluewater Oil Fund II LLC
Ridgewood Energy Bluewater Oil Fund IV, LLC
Ridgewood Energy Oil & Gas Fund II, L.P.
Ridgewood Private Equity Partners Energy Access Fund LLC

Recovery of Investment Losses

If you invested in a Ridgewood Energy 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 is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors in FINRA arbitration claims throughout the country. Visit our homepage to learn more about the firm.