Sonn Law Group Investigating Claims Related to Investments in Linn Energy

Sonn Law Group is investigating claims related to Linn Energy. Linn Energy, LLC (NASDAQ:LINE) is an oil and natural gas company headquartered in Houston, Texas. The Company’s mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets, according to its website. Linn Energy stock recently closed at $1.06 per share, down significantly from a 52-week high of $14.93, according to NASDAQ. LinnCo (NASDAQ:LNCO) was created to enhance Linn Energy’s ability to raise additional equity capital to execute on its acquisition and growth strategy. LinnCo stock recently closed at $0.88, down substantially from a 52-week high of $14.52, according to NASDAQ.

In October 2015, the Board of Directors announced that it would suspend Linn Energy’s distribution and LinnCo’s dividend effective September 30, 2015. This first time Linn Energy had cut its payout since going public in 2006. Linn is the largest energy producer set up to pay available cash to shareholders and avoid corporate taxes and had consistently paid healthy dividends since it went public in 2006, according to The Wall Street Journal. As a result, financial advisors may have recommended Linn stock or notes to retirees and other fixed income investors, who are now suffering sizeable investment losses.

A broker must have reasonable grounds for each recommendation made to investors considering such factors as the customer’s other securities holdings, financial situation, and risk tolerance. In addition, before a firm offers a security to its customers, the firm must conduct due diligence, that is investigate the facts surrounding the security, to confirm that it is suitable for any customer of the firm. The suitability of an investment for a particular individual is at the center of the investment process and one of the key fiduciary duties owed by a firm and its broker to the customer. A firm may be held liable for its failure to recommend suitable investments to its customers.

If you invested in Linn Energy, LLC, or LinnCo and have experienced investment losses, please call us at 844-689-5754 or complete our “contact form.” Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies.