The law firm of Meyer Wilson has successfully represented numerous investors
in recent years who suffered significant losses in energy-related stocks,
master limited partnerships (MLPs), and other similar investments. If
your stockbroker or financial advisor improperly sold you energy-related
investments that lost money, the lawyers at Meyer Wilson might be able
to help you recover your losses by filing mandatory arbitration claims
with the Financial Industry Regulatory Authority (FINRA).
Over the years, many investors were talked into buying energy-related stocks
and MLPs by their financial advisor because of the attractive dividends
that these investments often paid. Since energy markets declined dramatically
in 2015, however, these investments lost significant amounts of money
both in terms of decreased dividend payouts and loss of principal.
Many of our clients have been retirees who bought these investments because
of the income that these investments promised. In some cases these investments
no longer pay any dividends and the principal value of the investment
has lost 50 percent or more.
We have seen many instances where investors’ portfolios were over-concentrated
in energy stocks such as MLPs, meaning that too much of their portfolio
was invested in these stocks. Under securities industry rules, it may
be unsuitable for a stockbroker to recommend that an investor over-concentrate
their portfolio in a single stock or sector, like energy.
We have also seen numerous instances where financial advisors plainly misrepresented
various facts about these investments and sold them as though they posed
little risk to investors. In reality, as many investors have learned,
MLPs and energy stocks can be incredibly risky and volatile and subject
to significant risk of loss.
During the first half of 2017, some of the worst performing S&P 500
stocks continued to be energy stocks and MLPs. These include shares of
Transocean Ltd. (RIG), down 44.17%;
Anadarko Petroleum (APC), down 34.98%;
Range Resources (RR), down 32.57%;
Marathon Oil Corporation (MRO), down 31.54%;
Cimarex Energy (XEC), down 30.82%;
Devon Energy (DVN), down 30%;
Helmerich Payne (HP), down 29.79%;
Newfield Exploration (NFX), down 29.73%;
Hess Corporation (HES), down 29.57%;
Chesapeake Energy (CHK), down 29.20%; and
Noble Energy Inc. (NBL).
Since the energy markets declined in 2015, many investors have been assured
by their financial advisors that these investments will rebound. In many
cases investors have been lulled by their brokers into not taking any
legal action and simply hoping for the best. Energy stocks nevertheless
still have not recovered overall, and investors continue to contact our
office inquiring about their legal options.
If you lost money in energy stocks sold to you by your financial advisor,
contact the lawyers at Meyer Wilson today to discuss your legal options.
Under the law, nearly all customer disputes against brokerage firms must
be brought in FINRA arbitration. The lawyers at Meyer Wilson have represented
over a thousand investors in FINRA arbitrations and recovered millions
of dollars on behalf of their clients.
Contact our law firm today to learn more about your legal options and rights as an investor.