The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Atlas Growth Partners, LP to investors.
Atlas Growth Partners LP is a Delaware limited partnership and an independent developer and producer of natural gas, crude oil and NGLs with operations primarily focused in the Eagle Ford Shale in south Texas, according to filings with the SEC. The limited partnership is sponsored by Atlas Energy Group, LLC (“ATLS”), a Delaware limited liability company.
The company reportedly filed a form D private placement to raise capital from investors in 2015. According to the Form D, the total offering amount was purportedly $500,000,000 with an estimated $50,000,000 paid in sales commissions and fees.
Alternative investments such as these, have high sales commissions and due diligence fees. These high commissions and fees can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks. They may even focus on the income potential and tax benefits while downplaying the risks.
Unfortunately for investors, many oil and gas LPs are struggling to make distribution payments and some may end up defunct.
Filing a Complaint against your Brokerage Firm
Broker dealers that sell private placements are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
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 found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.
If you are concerned about investment losses in Atlas Growth Partners LP or another oil and gas LP, please contact The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, please visit www.whitesecuritieslaw.com.