Our Lawyers Initiate Investigation in Unsuitable Recommendations by Firms to Invest in Arch Coal

Silver Law Group, The Law Firm of David R. Chase, and Ciklin, Lubitz & O’Connell have initiated an investigation in unsuitable recommendations and overconcentration in Arch Coal, Inc. (“Arch Coal”).

U.S.-based Arch Coal was the second-largest coal producer in the country as of 2015, with 128 million tons of coal sold in 2015.  Even with that lofty title, plunging oil and energy prices brought the company down.

The company, publicly traded on the New York Stock Exchange at one point but now traded on the OTC Markets, was a hot commodity in trading circles.

The markings were already on the wall, as oil prices had drastically dipped in the middle of 2014, greatly affecting Arch Coal and its business.  While the price of oil waffled about up in 2015, it was only a matter of time before Arch Coal fell to low oil prices.

In January 2016, the company finally declared Chapter 11 bankruptcy, the fourth U.S. oil and gas company to do so.  Arch Coal sought to restructure more than $4.5 billion in debt.  On September 12, 2016, the U.S. Bankruptcy Court in St. Louis approved the restructuring plan, giving Arch Coal reprieve from nearly $5 billion in debt.

While Arch Coal gets a “mulligan,” investors are left holding the bill.

It’s no secret that the oil, gas and energy sectors have come under intense market pressure since the price of oil’s drastic price decline since 2014.  If your financial advisor or his/her firm failed to disclose the potential risks associated with your investments Arch Coal, or any other similarly-situated company in the oil, gas and/or energy sectors, we are interested in reviewing these issues in more detail.  The Law Firms have either filed arbitration claims and/or continue to investigate investment losses in Atlas Partners, Linn Energy, Alpha Natural Resources, Alliance Resource Partners, Cloud Peak Energy, Natural Resource Partners, Seadrill, Swift Energy, Chesapeake Energy and Transocean.

Firms that provided analyst coverage on these companies include, but are not limited to, Avondale, Needham, Merrill Lynch, Barclays Capital, BB&T Capital Markets, Jeffries, Robert W. Baird, Oppenheimer, JP Morgan, Morgan Stanley, FBR Capital, Deutsch Bank, Credit Suisse, RBC Capital Markets, Stifel, Raymond James, UBS and Wells Fargo.

If you lost money investing in Arch Coal or in oil and gas private placements, publicly-traded drilling partnerships, partnership bonds, or other oil and gas securities you may be entitled to recover some of your investment losses.

For more information about the Law Firms, the lawyers, and the oil and gasinvestment practice area, please visit the oil and gas investment website   You can also contact toll-free Mr. Silver at: (800) 975-4345 for a confidential, no-cost consultation on the potential for recovery of your investment losses.  Our attorneys represent clients nationwide in securities cases to recover investment losses.  No fee unless we obtain a recovery for you.

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