Continued Investigation Into Linn Energy, its Subsidiaries, and Brokers who Sold Them

The lawyers at the Silver Law Group, Law Office of David R. Chase and Ciklin Lubitz & O’Connell continue their investigation in Linn Energy, LinnCo, and the brokers and brokerage firms that sold these securities to investors.

Linn Energy and LinnCo are two companies whose investments are structured as master limited partnerships (MLPs).  What was once deemed a promising investment, the two companies have declined drastically.  The master limited partnership (MLP) surpassed $40 per share as recently as late 2012.  Since that time, Linn Energy has dramatically declined and recently declared bankruptcy.

Despite the risky nature of oil, gas, and energy-related securities, many brokers and brokerage firms aggressively sold these investments to their customers, some overconcentrating their customers in the sector.

When it comes to Linn Energy, Raymond James & Associates, Inc. (CRD# 705) was one of its biggest fans.  Raymond James helped the companies create a market and was an underwriter for many of its offerings.  This includes LinnCo’s initial public offering in 2012, Linn Energy’s initial public offering in 2006, and an additional public offering of Linn Energy in 2015.

Throughout the life of Linn Energy and its subsidiaries, Raymond James has steadily been an ally of the company.  For the last five years, Kevin Smith, Raymond James analyst and current senior vice president of the Houston, Texas branch, produced very positive ratings for Linn Energy.  For years, Smith kept a “Strong Buy” rating on Linn Energy despite other analysts’ caution.  After sticking with the gradually-declining company, Smith finally downgraded Linn Energy but only to “Outperform.”

Smith continues to become more bullish on oil and gas securities and master limited partnerships (“MLPs”), according to Barron’s, despite the rollercoaster the oil commodity has been on over the past few years.  This is also despite other reputable analysts, such as Citigroup Global Markets Inc. (CRD# 7059), remaining cautious.

Currently, our lawyers are investigating senior vice president of the Boca Raton, Florida Raymond James branch Martin L. Waldman (CRD# 4566228), also known as “Skip,” for unsuitable recommendations in the oil and gas industry.

If you have lost money investing in oil and gas related securities with Raymond James or any other broker-dealer, contact us.  Our lawyers have litigated hundreds of cases through FINRA arbitration and won millions of dollars on behalf of aggrieved investors.  Our lawyers represent investors nationwide in securities cases and FINRA arbitration to recover investment losses.  There is no fee unless we recover money for you.

For more information about the law firms, the lawyers, and our oil and gas investment practice area, please visit our website at  Contact Scott L. Silver at (800) 975-4345 for a free, confidential consultation.

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