October 28, 2016 Comments (0) Current Investigations

Memorial Production Partners LP Investigation

(Last Updated On: January 11, 2017)

Have you suffered losses investing in Memorial Production 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.

Memorial Production Partners LP was formed to own and acquire oil and natural gas properties in North America. The Company’s properties are located in South and East Texas and consist of mature, legacy onshore oil and natural gas reservoirs.  The company is based in Houston, Texas.

Recently the company has been making changes, when the company’s CEO stepped down on September 2, and was replaced by the President. According to reports there have also been some restructuring and asset sales. However, the stock closed at $1.09 this week, setting a new month-long low, and investors are likely starting to worry again.

Master Limited Partnerships (MLPs), like Memorial Production 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.

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 Memorial Production Partners LP, to their clients.

For more on the investigation see Recovery of Memorial Production Partners LP Losses.

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.

If you suffered losses investing Memorial Production 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.