Concerned about investment losses in SandRidge Exploration & Production LLC?
Have you suffered losses investing in SandRidge Exploration & Production LLC at the recommendation of a financial advisor? If so, the securities attorneys of The White Law Group may be able to help you recover those losses through a FINRA arbitration claim.
The White Law Group is continuing to investigate the liability that broker-dealers and financial professionals may have for improperly recommending SandRidge Energy investments to its clients.
SandRidge Energy, Inc. is an oil and natural gas company headquartered in Oklahoma City, Oklahoma with its principal focus on exploration and production. In order to raise money for its operations, SandRidge Energy has used the services of broker-dealers to sell “private placement” interests like SandRidge Exploration & Production LLC.
In May 2016, SandRidge filed for Chapter 11 Bankruptcy Protection, another victim in the downturn of oil prices. SandRidge listed $7 billion in assets and $4 billion in debt on its Chapter 11 bankruptcy petition, filed in the U.S. Bankruptcy Court for the Southern District of Texas.
The Trouble with Private Placements
The trouble with alternative investment products, like SandRidge Exploration & Production LLC, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks and bonds. An additional risk inherent to SandRidge Energy offerings is also the general risk that comes with the natural gas market – a market that has seen enormous losses over the last few years due to the declining cost of natural gas.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
However, another problem with Reg D private placements is that the high sales commission brokers earn for selling such products sometimes can provide some brokers with enough incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses in a FINRA arbitration claim.
If you suffered losses investing in SandRidge Exploration & Production LLC please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.
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The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.