Recovery of Investment Losses – 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.
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.
According to the most recent 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. The company notes it believes its “resources will be sufficient to fund operations into 2021 and we will be able to continue as a going concern for one year.”
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.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.