October 1, 2019 Comments (0) Blog, Securities Fraud

Plains All American Pipeline Investment Losses

Plains All American Pipeline Investment Losses, featured by top securities fraud attorneys, The White Law Group

Concerned about your investment losses in Plains All American Pipeline?

Have you suffered losses investing in Plains All American Pipeline? 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 25% in the past 6 months. According to the LA Times, the company was fined nearly $3.35 million in
April for reportedly causing the worst California coastal spill in 25 years.

The 2015 spill, reportedly due to a corroded pipeline, sent “140,000 gallons of crude oil gushing onto Refugio State Beach in Santa Barbara County,” according to the article.

Plains All American Pipeline, a Master Limited Partnership (MLP), is reportedly focused on owning and operating midstream energy infrastructure that is “strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in North America.” The company, based in Dallas, Texas, currently provides fee-based natural gas gathering and compression services.

Master Limited Partnerships (MLPs), like Plains All American Pipeline, are a type of limited partnership that is publicly traded. MLP’s receive the same tax benefits of a limited partnership combined with the liquidity of a publically traded security. In order to be classified as an MLP the partnership must receive 90% of its cash flow from a “qualifying source” – such as real estate, natural resources or commodities.

MLPs are extremely complex and risky, making them only suitable for wealthy, sophisticated retail investors or institutional investors.  The high fees they generate may cause unscrupulous financial advisors looking to maximize their own commissions to recommend them improperly.

Investigating Potential Lawsuits

The White Law Group continues to investigate the liability that brokerage firm may have for unsuitably recommending Plains All American Pipeline 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 Plains All American Pipeline 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.