Investigating Potential Securities Claims Involving Atlas Growth Partners LP 

The White Law Group continues to investigate securities claims involving the liability that broker dealers may have for improperly recommending Atlas Growth Partners LP to its clients. 

Atlas Growth Partners, L.P. is an independent developer and producer of natural gas, crude oil and NGLs with operations primarily focused in the Eagle Ford Shale in south Texas.  Atlas Energy Group, LLC (“ATLS”), a Delaware limited liability company, manages and controls the limited partnership. 

According to filings with the SEC in March 2021, investors in Atlas Growth Partners may have lost close to 99% of their investment principal. While the company has raised more than $230,000,000, as of March 31, 2021, the company reports net assets of less than $4 million. 

Atlas has neglected to file several financial reports since 2019, and as of December 21, 2021 the company has  filed a notice to terminate its securities registration. 

The company filed a form D to raise capital from investors for the in 2015 and the total offering amount was $500,000,000 with sales fees and commissions estimated at 10% of the offering amount. 

Earlier this year the company noted in a filing with the SEC that there were “significant risks and uncertainties related to our inability to satisfy our current liabilities raise substantial doubt about our ability to continue as a going concern.” 

Atlas Growth Partners sees Steady Decline 

According to filings with the SEC in November, for the nine months ended September 30, 2020 and 2019, the company had net losses of $7.2 million and $3.3 million, respectively, and cash used in operating activities of $0.9 million and $0.3 million, respectively.  

Beginning in March 2020, significant price decline and price volatility for oil and gas products emerged in the market due to the Covid-19 global pandemic. The company notes that it has been directly impacted by these price changes and if demand and prices remain depressed for an extended period of time, they could continue to be impacted. “Given the volatility and uncertainty, we may be at risk of being able to identify and secure a party to gather and purchase our products,” which could result in “significant decreases in oil and gas operations.” 

Filing a Complaint against your Brokerage Firm 

The White Law Group has received numerous calls from Atlas Growth Partners LP shareholders who are concerned about investment losses.  

Many investors were not fully aware of the problems and risks associated with illiquid, high risk, oil and gas limited partnerships before purchasing them. Alternative investments such as this one, are complex and inherently risky products and often better suited for sophisticated and institutional investors. 

Another problem often associated with alternative investment recommendations is the high sales commissions brokers typically earn for selling them– as high as 15%.  Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. 

Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations. 

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim. 

If you are concerned about investment in Atlas Growth Partners LP 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 Seattle Washington. 

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