Ridgewood Energy X Fund – Oil & Gas Securities Investigation
Have you suffered investment losses in Ridgewood Energy X Fund? The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Ridgewood Energy X Fund to investors.
Ridgewood Energy is a private equity firm focused on investments in the Deepwater Gulf of Mexico, according to its website. Ridgewood Energy is a “direct placement program.” This means that its units are directly sold by brokers to customers. The Ridgewood Energy Funds are complex and risky.
The trouble with oil and gas programs, like Ridgewood Energy X Fund, is that they involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds. These investments are typically sold as unregistered securities and lack the same regulatory oversight as more traditional investment products. Illiquidity is also a problem.
In August 2017, LP Sales, a secondary market for private placements, sold .375 of a unit of Ridgewood Energy X Fund for $4,766.31.
An additional risk inherent to Ridgewood offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years.
Broker dealers that sell oil and gas 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.
Unfortunately many brokers may be incentivized to sell these oil and gas investments because of the high sales commission they can earn. Brokers receive 8% commission on Ridgewood Energy offerings. There are also several additional fees.
Recovery of Investment Losses
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 through FINRA arbitration.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Ridgewood Energy X Fund or another Ridgewood Energy offering, please contact The White Law Group at 1-888-637-5510 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 firm, visit www.WhiteSecuritiesLaw.com.