The Law Offices of Jeffrey Pederson PC is investigating investor losses sustain in SandRidge Energy. If you have suffered such losses please call 1-866-817-0201 for a free and confidential consultation.
SandRidge Energy Inc, an Oklahoma City-based oil and gas exploration and production company, declared bankruptcy on May 16, 2016.
This Chapter 11 bankruptcy ads SandRidge to the waive of energy companies filing for bankruptcy in 2016.
This bankruptcy by SandRidge will likely leave thousands of investors in Sandridge with substantial losses. While Sandridge was always a highly speculative investment, our investigation reveals that the investment was commonly and inappropriately sold to those seeking or needing a stable, moderate risk investment. As such, many investors purchased Sandridge as part of a moderate to low risk or retirement planning portfolio. These people have recourse for their losses.
Such sale of unsuitable investments can be either negligence or fraud. Speculative investments like SandRidge can pay a higher commission to brokers, giving brokers an inappropriate incentive to place investors in higher risk investments than is suitable. Brokers can also recklessly put investors in high-risk investments to tout higher returns while failing to notify of the higher risk. Recourse is generally obtained through the filing for arbitration with FINRA, the regulator overseeing brokers.
Additionally, there is an issue of proper investigation by brokerage firms into the claims of SandRidge as to its reserves. The Securities and Exchange Commission has filed a $1.2 million claim in SandRidge Energy Inc.’s bankruptcy case relating the company’s firing of a whistle-blower who alleged the company didn’t accurately report its oil and natural gas reserves.
SandRidge, which first disclosed the investigation in securities filings earlier this year, provided more information in a quarterly filing on Monday. The company said it is cooperating with the investigation. The audit committee of the company’s board of directors has hired an independent law firm to look into the former employee’s
SandRidge had received a letter from the attorney of a former employee who alleged inaccurate reporting of oil and natural gas reserves figures in its public filings. The company said 85 percent of those reserves were calculated by an independent petroleum engineering firm.
Jeffrey Pederson has successfully handled such suitability cases for a large numbers of investors in FINRA arbitrations and is looking to help SandRidge investors. Please call. Representations handled largely on a contingent fee basis where attorney fees are only paid upon the recovery of losses.