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.

Sonn Law Group is investigating claims regarding Joel Eziekel Blum (CRD #4905379, Goshen, New York). Blum recently submitted an AWC in which he was fined $10,000 and suspended from association with any FINRA member in any capacity for 20 days. See FINRA Case #2014040186601. Blum was associated with Merrill Lynch from May 2008 until his termination in February 2014. Blum has been associated with Ameriprise Financial Services, Inc., since February 2014. The Form U-5 filed by Merrill Lynch to terminate Blum's registration states that he was discharged for "conduct including failure to contact clients in advance of entering orders in non-discretionary accounts and mismarking order tickets as unsolicited." FINRA found that Blum executed discretionary transactions in customer accounts without written authorization to do so. In addition, Blum mismarked order tickets in connection with these transactions, inaccurately indicating that the trades were unsolicited, according to FINRA. In entering into the AWC, Blum neither admitted or denied FINRA's findings. 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, Ameriprise or Merrill Lynch may be liable for investment or other losses suffered by Blum's customers. If you were a client of Ameriprise, Merrill Lynch, or Blum, and have suffered investment losses or financial irregularities, please contact Sonn Law Group to explore your legal options. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 844-689-5754 or complete our "contact form."
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