Investment Losses with Linn Energy
The White Law Group, LLC is currently investigating the liability that brokerage firms may have for recommending Linn Energy investments to their clients.
According to their website, Linn Energy is a multi-billion dollar E&P company headquartered in Houston, Texas. The company went public in 2006 raising approximately $261 million it its initial public offering.
On July 1, 2013, Linn Energy announced that the Securities and Exchange Commission is conducting an informal investigation in to the company’s use of non-GAAP financial measures and hedging strategy. In addition, the SEC’s inquiry appears to include Linn Energy and LinnCo’s proposed merger with Berry Petroleum Company.
Class Action Suits
Recent class action suits allege that between 2010 and 2013 Linn Energy may have issued certain materials that were false or misleading, and failed to adequately disclose business strategies. The allegations include improper use of non-GAAP accounting for its hedging strategy, failure to adequately disclose risk associated with cash flow, and the company’s inability to make future distributions.
Investors seeking to recover investment losses are not limited solely to these class action suits. Some investor may be able to recovery investment losses through a FINRA dispute resolution claim against the brokerage firm that recommended the investment.
Though oil and gas investments can be quit lucrative, they are complex deals that are extremely high risk, and are not suitable for all investors. In addition, the high sales commissions associated with oil and gas deals often provides some brokers with enough incentive to overlook suitability requirements. Unfortunately some investors may have been talked into oil and gas investments, like Linn Energy, by brokers that overlooked suitability requirements and sold the investment improperly. Broker dealers have a fiduciary duty to put their clients interests above their own and to take into consideration a client’s age, risk tolerance, net worth, financial needs, and investment experience before making investment recommendations.
Brokerage firms that misrepresent the risks associated with an investment or overlook suitability requirements can be held responsible for investment losses.
Recovery of Investment Losses
If you invested in Linn Energy and would like to discuss your litigation options, please call the securities attorneys of 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.
For more information on The White Law Group, visit http://www.WhiteSecuritiesLaw.com.