Have you suffered losses investing in Summit Midstream 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.
On September 6th, Summit Midstream Partners, LP (NYSE: SMLP) announced the pricing of its underwritten public offering of 5,500,000 common units representing limited partner interests in SMLP at a public offering price of $23.20 per common unit.
The underwriter has been granted a 30-day option to purchase up to an additional 825,000 common units, less the underwriting discount. The offering is scheduled to close on September 9, 2016, subject to customary closing conditions. SMLP intends to use the net proceeds from this offering to repay borrowings under its revolving credit facility, according to the press release.
Summit Midstream Partners LP is an MLP, and is focused on owning and operating midstream energy infrastructure that is strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in North America. The Company currently provides fee-based natural gas gathering and compression services. The company is based in Dallas, Texas.
The vast majority of MLPs have been and continue to be pipeline businesses because of the general nature of the MLP structure and the strict requirements imposed them. However, MLP’s are extremely complex and risky, making them only suitable for wealthy, sophisticated retail investors or institutional investors. They also generate astronomical fees, which may cause unscrupulous financial advisors looking to maximize their own commissions to recommend them improperly.
Because of this, The White Law Group is investigating the liability that brokerage firms may have for recommending high risk MLPs, like Summit Midstream 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.
For more information on the investigation, Update: Summit Midstream Partners, LP.
If you suffered losses investing Summit Midstream 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.