Concerned about your investment losses in Hi-Crush Partners LP?
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 Dispute Resolution Claim against the brokerage firm that sold you the investment.
After a rebound in stock prices in 2017, the company’s share price has reportedly 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 last October, and it’s not looking good for Hi-Crush investors.
Hi-Crush Partners LP, together with its subsidiaries, 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.
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.
Master Limited Partnerships (MLP) are typically complex and risky, making them better suited for institutional investors or wealthy and sophisticated retail investors.
Investigating Potential Lawsuits
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.