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Did you Lose Money with Linn Energy, LLC?

Posted on Thursday, May 25th, 2017 at 11:35 am    

Erez Law is currently investigating financial advisors across the country who recommended investments in Linn Energy, LLC, a company that has since filed for bankruptcy. Linn Energy was a petroleum, natural gas, and natural gas liquids exploration and production company based in Houston, Texas.

The volatile energy sector experienced significant turmoil, and Linn Energy and other energy companies were negatively impacted when global crude oil prices fell below $40 per barrel at the end of 2015. This was the lowest level since early 2009, as supply was in excess of global demand. During this time, Linn Energy bonds were considered high risk “junk bonds.” A junk bond is a high-yield and high-risk security. Junk bonds have a speculative nature and a higher default risk and yield in relation to investment-grade bonds with a higher credit ranking. Junk bonds are risky investments that have a speculative appeal because of their high-yield nature.

According to a statement on their website, Linn Energy, LLC filed a voluntary petition for restructuring under Chapter 11 of the Bankruptcy Code in May 2016. In February 2017, LINN Energy, Inc. was formed as the reorganized successor to Linn Energy, LLC.

Additionally, Linn Energy issued publicly traded stocks. LINN Energy, LLC (LINE) and LinnCo, LLC (LNCO) were delisted from The NASDAQ stock market in May 2016 following bankruptcy proceedings, according to a release on the company’s website. As of March 2017, LINN Energy, LLC (LINE) currently trades for $.07.

Investments in Linn Energy and similar stocks and bonds in the volatile energy sector may not be suitable for investors looking to generate income or maintain principal. Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, brokerage firms across the country may be liable for investment or other losses suffered by its brokers customers.

Erez Law represents investors in the United States for claims against brokerage firms who recommended investments in Linn Energy stocks and bonds. If you have experienced investment losses as a results of investments in Linn Energy, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.