Linn Energy exited its chapter 11 bankruptcy leaving many shareholders with nothing but a worthless piece of paper.
Linn Energy is an oil and gas master limited partnership (“MLP”) founded in 2003. The company went public just three (3) years later in 2006, raising approximately $261 million.
Linn Energy was once the darling of the oil and gas industry, reaching peaks of $40 per share in late 2012. The company went on an acquisition spree, including Berry Petroleum for $4.3 billion at the height of the oil boom in 2013. Unfortunately, the oil boom didn’t last, and the debt Linn Energy took on was too large to support when the price of oil began to plunge in June 2014.
Amidst numerous other oil and gas bankruptcies, Linn Energy filed for chapter 11 protection in May 2016 the largest MLP bankruptcy with over $8.3 billion in debt. Nine (9) months later, Linn Energy has emerged from chapter 11 protection as two private companies held by some of Linn Energy’s larger creditors.
Numerous brokerage firms have underwritten at least one, in some cases more than one, Linn Energy and LinnCo, its public subsidiary, offerings. The list includes Raymond James & Associates, Inc. (CRD# 705); RBC Capital Markets (CRD# 31194); Morgan Stanley & Co. LLC (CRD# 8209); Barclays Capital Inc. (CRD# 19714); Citigroup Global Markets (CRD# 7059); Wells Fargo Securities, LLC (CRD# 126292); and Credit Suisse Securities (USA) LLC (CRD# 816).
MLPs, including Linn Energy, were often touted as safe, conservative investments that would draw high yield for its investors. But many MLPs are based on the price of oil, which has never been conservative. Unfortunately, many brokers and brokerage firms still placed their customers’ money in these MLPs, which subsequently tanked with the most recent swing in oil prices.
Our attorneys continue to investigate claims against brokers and brokerage firms that may have unsuitably recommended Linn Energy and/or LinnCo to its investors or overconcentrated oil and gas investments in customer accounts.
If you have lost money investing in oil and gas related securities such as Linn Energy and/or LinnCo due to the recommendations and/or actions of your broker and brokerage, 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 www.oilgasfinraarbitration.com. Contact Scott L. Silver at (800) 975-4345 for a free, confidential consultation.