Hilltop Energy – Cubic Energy – Securities Investigation
According to reports earlier this month, Hilltop Energy LLC, a Texas oil and gas drilling company, filed for bankruptcy on May 17 with a “prepackaged” plan.
Hilltop, formerly known as Cubic Energy Inc., filed for chapter 11 “after years of red ink left the company unable to cover its expenses,” according to a report in the Wall Street Journal.
Cubic Energy, Hilltop’s predecessor company, filed for bankruptcy in 2015 and emerged from bankruptcy in 2016 under the control of a group of bondholders led by funds managed by Anchorage Capital Group LLC.
The problem with oil & gas investments such as Hilltop Energy is that they typically involve a high degree of risk especially since the energy market has seen huge losses since 2014.
Investigating Potential Claims
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for unsuitably recommending high-risk oil & gas investments, like Hilltop Energy to investors.
Brokerage firms are required to perform due diligence on any offering they recommend and to ensure that all recommendations made are suitable in light of the client’s age, investment experience, net worth, income, and investment objectives.
If a firm fails to perform due diligence or makes an unsuitable recommendation, the broker-dealer can be held responsible for any losses in a FINRA arbitration claim.
FINRA can help resolve problems and disputes through two non-judicial proceedings: arbitration and mediation. FINRA’s Dispute Resolution forum handles nearly all of the securities-related arbitrations and mediations in the United States.
If you have concerns regarding your investment in Hilltop Energy and would like to speak with a securities attorney about your options, please call The White Law Group at 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 and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.