American Energy Marcellus Holdings – Securities Investigation
According to reports, Ascent Resources Marcellus Holdings LLC said on Tuesday it had filed for Chapter 11 bankruptcy as part of a negotiated plan with lenders to reduce about $1 billion of debt and boost liquidity.
The company, a shale driller founded by the late U.S. fracking pioneer Aubrey McClendon, is one of several energy companies McClendon launched after he was kicked out in 2013 during a corporate governance crisis from Chesapeake Energy Corp, which he had founded and built into one of the largest U.S. shale drillers.
According to SEC filings, McClendon filed a Form D to raise capital in 2014 through the offering American Energy Marcellus Holdings LLC.
Investigating Potential Claims
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended American Energy Marcellus Holdings to investors.
Due to the high degree of risk associated with oil and gas offerings, like American Energy Marcellus Holdings, they are generally more appropriate for sophisticated and institutional investors. Unfortunately, because of the high commissions these products generally pay to brokers, they are often sold to unsophisticated and retired investors.
Broker-dealers have a legal obligation to act in the best interest of their clients and have to demonstrate adequate due diligence on an investment before recommending the investment to a client. Furthermore, recommendations should be consistent with an individual’s age, risk tolerance, financial objectives, and investment knowledge.
Broker-dealers that have not done their fiduciary duty or adequately disclose the risks when selling investments may be held liable for damages lost through FINRA arbitration claims.
If you are concerned about your investment in American Energy Marcellus Holdings or Ascent Resources Marcellus Holdings, The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.
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.
For more information on The White Law Group, visit https://whitesecuritieslaw.com.