FirstEnergy Solutions Downgraded
The White Law Group is investigating potential claims involving FINRA registered broker dealers who may have unsuitably recommended FirstEnergy Solutions to investors.
FirstEnergy Solutions Corp. is a power generator that reportedly pleaded for the Trump administration’s help in bailing out struggling coal and nuclear plants.
FirstEnergy Solutions owns a fleet of coal and nuclear plants in Ohio and Pennsylvania. Electricity generators such as FirstEnergy, have seen profits dive due to low power prices, cheap natural gas and surging development of wind and solar.
The company had already announced plans to shut three nuclear plants in the PJM region and has closed several coal-fired generators since 2012.
In January, Moody’s downgraded FirstEnergy Solutions, saying the likelihood is very low that FirstEnergy Solutions will be able to repay its $98.9 million senior unsecured bond that matures on April 2.
Investments in the energy market can be high risk. The energy market has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities. These investments may seem wise at first, until the dramatic drop in distributions.
Investigating Potential Claims
The White Law Group is investigating the liability that brokerage firms may have for improperly selling energy investments like FirstEnergy Solutions to investors.
Broker dealers are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. 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 found liable for investment losses in a FINRA arbitration claim.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of FirstEnergy Solutions or another energy investment, 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. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.