January 17, 2016 Comments (0) Blog

Investor Alert: SunCoke Energy Partners LP Securities Investigation

Have you suffered losses investing in SunCoke Energy Partners LP?   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.

SunCoke Energy Partners LP has been recently formed to acquire entities that own its sponsor’s Haverhill and Middletown cokemaking facilities and related assets. The Company intends to produce coking products.  The company is based in Lisle, Illinois.  According to Bloomberg, the fund is down over 73% in the last year.

Master Limited Partnerships (MLPs), like SunCoke Energy Partners LP 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.

The vast majority of MLPs have been and continue to be pipeline businesses because of the general nature of the MLP structure and the strict requirements imposed them.  In theory, these investments offer income potential and are attractive to retired investors seeking steady income.  However, MLP’s are extremely complex and risky, making them only suitable for wealthy, sophisticated retail investors or institutional investors.  They are also a dream product for Wall Street because of the fees they generate, which may cause unscrupulous financial advisors looking to maximize their own commissions to recommend them improperly.

It is for this reason that The White Law Group is investigating the liability that brokerage firms may have for recommending high risk MLPs, like SunCoke Energy Partners LP, to their clients.

Brokerage firms that sell oil and gas MLPs are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to 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 SunCoke Energy Partners LP or another MLP and would like to discuss your litigation options, please call The White Law Group at (312)238-9650 for a free consultation.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.

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

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