HOUSTON, April 01, 2020 (GLOBE NEWSWIRE) -- Shepherd, Smith, Edwards & Kantas, LLP (SSEK Law Firm) is investigating claims involving Midstream Master Limited Partnerships (MLP).  Our MLP investment fraud lawyers work with investors that have sustained significant losses caused by fraud or negligence.  Many investors don’t realize that even during turbulent times, losses from MLPs may be grounds for a broker fraud claim.

With the fall in oil and energy stocks and sustained low prices, what does this mean for MLPs?  MLPs, public companies that trade on key stock exchanges, are typically associated with the energy industry.  Many of these companies are involved with refineries, pipelines, or processing plants for different kinds of energy sources, such as oil.  This means that MLP share prices are typically in direct correlation to the prices of these resources.  Midstream MLPs tend to deal with the transportation, storing, and processing of oil and natural gases. As a result, when oil prices drop, typically so do the value of MLPs for investors, resulting in losses.

It doesn’t help that a decline in oil prices can lead to producers having to further curb drilling activity, as well as spending. While not all Midstream MLPs will be impacted, for others, there could be a limit in growth opportunities and a struggle to renew or replace contracts that expire while production has dropped.  Unfortunately, many Midstream MLP investors likely were not properly warned of the risks involved in these investments, which should only be recommended to investors that can handle a certain degree of risk. 

Here are the more typical risks involved with MLPs even when oil prices aren’t dropping:

1. They are not ideal for IRAs due to possible, but rare, business taxable income.
2. These are complex investments that are hard to understand for the inexperienced investor.
3. There could be long-term tax consequences. 
4. Yields can be exaggerated and are not comparable to yields from other kinds of investments. 

If you or a loved one lost money from investing in an MLP and want to explore whether fraud or negligence was involved, contact SSEK Law Firm today for a free, confidential evaluation of your investments and legal options.  Our Texas-based MLP investor fraud attorneys work with investors throughout the US.

Contact Info – 800-259-9010

Sam Edwards:  sedwards@sseklaw.com

Kirk Smith:  ksmith@sseklaw.com