Recovery of Investment Losses in Atlas Resources Series 34-2014 LP
The White Law Group continues its investigation into the liability that FINRA registered broker-dealers may have for unsuitably recommending Atlas Resources Series 34-2014 or other Atlas offerings to investors.
Atlas Resources Partners LP filed for bankruptcy protection on July 26, 2017 and joined dozens of struggling oil and gas producers that were pushed into Chapter 11 after energy prices began dropping in 2014.
Atlas Resource Partners LP (ARP) emerged from bankruptcy protection with a new name, Titan Energy LLC, after the company reached a restructuring deal with nearly all of its lenders and bondholders.
The White Law Group has handled a number of claims involving Atlas. In those claims, the firm has alleged, among other things, that the Atlas investments were
(1) high-risk and unsuitable for our clients given their financial situation, needs and investment objectives,
(2) that the risks of the investment were not fully disclosed to them, and
(3) that the brokerage firms that sold the investments failed to conduct the proper due diligence with respect to the Atlas investments (as the firms are required to do by FINRA Rules).
Oil and Gas LP – A suitable investment for you?
Oil and Gas LPs are typically high risk, complex investments. Unfortunately, some brokers may have downplayed the risks associated with these limited partnerships. They have misled investors into thinking that they are “safe” investment products.
The high sales commission brokers earned for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors. Your typical stock or mutual fund offers 1%-2% commission.
The commissions for limited partnerships like Atlas, are often 7% – 10%. In this particular case, according to the REG D, sales commissions and fees are approximately 9%.
Broker dealers that sell oil and gas LPs are required to perform adequate due diligence on all investment recommendations. They must 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.
If investors are not experienced they may not realize that the brokers may focus on the income potential and tax benefits while downplaying the risks.
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 liable for investment losses in a FINRA arbitration claim.
If you are concerned about your investment in Atlas Resources Series 34-2014 LP, the securities attorneys at The White Law Group may be able to help you to recover your losses. Please contact The White Law Group at 1-888-637-5510 for a free consultation.
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 firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.