OIL & GAS MASTER LIMITED PARTNERSHIP ATTORNEYS BASED IN NEW YORK

What Are Master Limited Partnerships (MLPs)?

MLPs combine the liquidity of a publicly traded company with the tax benefits of a private partnership where profits are only taxed when investors receive distributions. They are also known as business ventures existing in a form of a publicly traded limited partnership.

MLPs have 2 kinds of partners:

The first kind includes general partners who manage the day-to-day operations of the MLP and receive compensation depending on the business performance.

The second class of partners refer to investors, also addressed as limited partners who buy shares in the MLP which provides as capital for the operations.

Limited partners, also known as silent partners, usually receive distributions from the MLP every quarter of the year. These publicly traded units are not the same as stock shares, hence investors are called unitholders who are allocated a portion of the MLP’s income, credits, losses and deductions. MLPs are put into place to take advantage of cash flow and reduce the cost of capital in businesses that are capital-intensive, such as oil and gas. MLPs are restricted to real estate sectors, but more often to commodities and natural resources.

For comprehensive information regarding your unique New York oil and gas master limited partnership case, call our firm at (877) 905-7671.

Securities Fraud Claims

Ethical and well-informed brokers and financial advisors are responsible for recommending only suitable products to their clients for investments as well as being transparent on the risks and possible yields of such products. Due to the low interest rates, numerous brokers sell MLPs to their clients with the misrepresentation that it is a safe method to earn higher interest rates with close to little or no risk. However, with the latest drop in oil, gas and other commodity prices, a large number of MLPs have been adversely affected and many investors have completely lost their investment. When brokers made sales on MLPs, they have either overlooked or misrepresented the risks related to the investments due to an act of negligence. Weltz Law looks into possible securities fraud claims against brokerage firms regarding sales practices related to the recommendations of oil and gas products especially in the area of MLPs.

Experienced Attorneys Offering Legal Services Nationwide

If you have suffered financial losses as an investor for oil and gas master limited partnerships (MLPs), you may attempt to recover your losses through securities arbitration. Taken place before the Finance Industry Regulatory Authority (FINRA), arbitrators decide the case instead of juries or judges against the brokerage firm. The rules of evidence are also more flexible in arbitration as they also consider evidence in arbitration that might have not been admissible in court. Due to the complexity and complications of the cases with FINRA, it is important to engage a lawyer who is very familiar with FINRA and its procedures as well as their rules and regulations.

Weltz Law understands that for many clients, the investments lost is frustrating and represents a huge financial setback due to the loss of years of savings. Our knowledgeable and experienced attorneys can help you assess your case and fight for the compensation you deserve.