Did you lose money on an oil and gas investment like American Eagle Energy? If so, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.
American Eagle Energy is an independent oil exploration and production operator based in Denver Colorado. The company has a focus on acquiring acreage and developing wells in Bakken and Three Forks shale oil formations of North Dakota and Montana.
The prolonged decline in crude oil and gas has caused havoc for many companies, including American Eagle Energy. In March, American Eagle Energy filed for chapter 11 bankruptcy.
According to Forbes, American Eagle Energy became the fourth U.S. energy producer to file for bankruptcy protection this year. The company listed assets of $222 million and liabilities of $215 million.
Unfortunately, many investors were not made adequately aware of the risks associated with energy investments. Oil and gas investments are generally speculative and very high risk ventures. They are arguable better suited for sophisticated and institutional investors that can afford total loss of their investment. Even bonds in the oil and gas industry, which many investors think of as “safe,” are not without risk.
Undoubtedly the bankruptcy will affect interests in American Eagle Energy. As such, the White Law Group is investigating the liability some brokers may have for recommending American Eagle Energy investments.
Before recommending an investment, your broker has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor. Unfortunately, brokers sometimes fail to perform the necessary due diligence prior to recommending them to their clients.
To determine whether you may be able to recover investment losses incurred in American Eagle Energy please contact 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.