February 21, 2019 Comments (0) Blog, Current Investigations

Hi-Crush Partners LP Investigation Update

Hi-Crush Partners LP Investigation Update, Featured by Top Securities Fraud Lawyers, The White Law Group

Hi-Crush Partners LP Investment Losses updated on 10/16/19

Have you suffered losses investing in Hi-Crush Partners LP? If so, the securities attorneys of The White Law Group may be able to help you by filing a FINRA Resolution Claim against the brokerage firm that sold you the investment.

Hi-Crush Partners LP, together with its subsidiaries, provides “proppant and logistics solutions” to the energy industry in North America. The company produces monocrystalline sand, a specialized mineral used as a proppant during the well completion process to facilitate the recovery of hydrocarbons from oil and natural gas wells.

Hi-Crush was initially set up as a master limited partnership (MLP), supplying sand to the oil and gas industry to benefit from the tax-advantaged structure MLPs provide.

Master Limited Partnership’s (MLP) are typically complex and risky, making them better suited for institutional investors or wealthy and sophisticated retail investors.

As the shale boom has taken off, prices have reportedly fluctuated wildly. Also, with recent changes to the tax code at the beginning of 2018, the advantage of being an MLP isn’t nearly as great as it once was. According to reports, Hi-Crush has elected to convert from an MLP to a conventional C-corporation.

Update on October 16, 2019

After a rebound in stock prices in 2017, the company’s share price has dropped again, more than 70% in the past 6 months. In August 2018, the market began to experience a rapid change in conditions, driving a reduction in demand and pricing for frack sand. Add to that, the general slide in oil prices that started in October, and it may not be a positive outlook for investors.

Securities Investigation

The White Law Group continues to investigate the liability that brokerage firm may have for unsuitably recommending Hi-Crush Partners LP to investors.

Brokerage firms are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success.

Further, they must evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

If you suffered losses investing in Hi-Crush Partners LP or another MLP and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

 

 

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