Have you experienced substantial losses in Whiting Petroleum (NYSE: WLL)? If so, the securities attorneys at Colling Gilbert Wright & Carter may be able to help you by investigating and filing a Financial Industry Regulatory Authority (FINRA) arbitration claim against registered brokerage firms that recommended and sold the investment.
On September 4, 2020, Whiting Petroleum Corp. announced that it had drawn $650 million on its credit facility to fund its ongoing operations. Two days later,, the Denver-based oil and gas exploration and production company said it was filing for Chapter 11 bankruptcy protection.
Whiting reportedly has reached an agreement in principle with some debt holders that includes a “comprehensive restructuring” of $2.2 billion in debt in exchange for 97% of the new equity in the reorganized company. Under the proposed restructuring plan, pending approval by the bankruptcy court, existing shareholders will receive only 3% of the new equity in the reorganized company. Essentially wiping out most of their investment.
Colling Gilbert Wright & Carter is currently investigating the liability FINRA registered brokerage firms may have for recommending this suspect, high-risk oil and gas investment. Under FINRA rules, registered broker/dealers are required to perform adequate due diligence before recommending any investment. They must also ensure that all recommendations are suitable for the investor in light of that particular investor’s age, risk tolerance, net worth, and investment experience. If a brokerage firm or financial advisor fails to perform due diligence on an investment they recommend or recommends an investment that is unsuitable, they can be held liable for any subsequent losses.
If you invested in Whiting Petroleum and would like top see if you may have a claim for damages, please contact us for a complimentary case evaluation. Thank you.