Shoreline Energy LLC Investment Losses
Have you suffered investment losses in Shoreline Energy LLC? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Houston-based Shoreline Energy LLC and its subsidiaries have filed for Chapter 11 bankruptcy in the Southern District of Texas, according to court documents on November 2.
The company’s assets and debts each are somewhere between $100 million and $500 million, and upward of 10,000 creditors, according to the documents.
On December 12, Shoreline Energy, LLC filed a plan of liquidation in the US Bankruptcy Court. Existing equity holders will not receive any property on account of their interests and equity will be cancelled. The plan will be funded through the sale proceeds and available cash in hand.
The Problem with Alternative Investments
The trouble with alternative investment products, like Shoreline Energy LLC, is that they involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds. Alternative investments are typically sold as unregistered securities and lack the same regulatory oversight as more traditional investment products.
An additional risk inherent investing in Shoreline Energy is the general risk that comes with the energy market – a market that has seen enormous losses over the last few years.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
However, another unfortunate by product of Reg D private placements is that the high sales commission brokers earn for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of products.
Recovery of Investment Losses
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Shoreline Energy LLC or another oil and gas investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.
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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.