DCP MidStream FINRA Lawsuit

DCP MidStream Lawsuit

The Haselkorn & Thibaut, P.A. law firm is a nationwide investment fraud law firm (www.investmentfraudlawyers.com) investigating potential sales practice violations by financial advisors who were recommending DCP and energy sector related investments to main street investors.  Looking back, the DCP price was generally over $30.00 since mid-2016 and through most of 2017, 2018 and into 2019.  In 2019, the DCP price range was generally around $25.00 to $30.00.  In the beginning of 2020, DCP was around $26.00.  More recently, DCP is trading under $5.00!  Although the reference here is to the stock price, some investors have exposure in high yield bonds (or junk bonds) and other securities.

DCP Midstream, L.P. (Symbol: DCP) – together with its subsidiaries, owns, operates, acquires, and develops a portfolio of midstream energy assets in the United States. The company operates in two segments, Logistics and Marketing, and Gathering and Processing. The Logistics and Marketing segment engages in transporting, trading, marketing, and storing natural gas and natural gas liquids (NGLs); fractionating NGLs. The Gathering and Processing segment is involved in gathering, compressing, treating, and processing natural gas; producing and fractionating NGLs; and recovering condensate. The company owns and operates approximately 44 natural gas processing plants and 51,000 miles of natural gas gathering and transmission systems. It serves petrochemical and refining companies, and retail propane distributors. The company was formerly known as DCP Midstream Partners, LP and changed its name to DCP Midstream, LP in January 2017. DCP Midstream, LP was founded in 2005 and is headquartered in Denver, Colorado.



The Haselkorn & Thibaut, P.A. law firm is a nationwide investment fraud law firm investigating potential sales practice violations by financial advisors who were recommending DCP and many similar energy sector investments sold to investors.

For investors, this is a particularly tough blow as these are the types of investments that were often recommended by financial advisors who did not disclose the potential level of risk that was realized and investors were unaware of the real level of risk to which their investment principal was exposed as it was never properly disclosed (if it was ever disclosed at all) by their financial advisors.

Although Financial advisors may claim that these were unforeseen market events, the reality is that these are similar risks to those experienced in the 2008-2009 financial crisis.  These potential risks were material risks that should have been properly disclosed to clients before recommending these investments individually or as part of a portfolio or investment strategy.
Oil, gas and energy linked investments have been promoted in recent years as an attractive source of dividend income in an otherwise low interest rate environment.  It’s important to note that in making such recommendations to investors, a fair and balanced disclosure of material risks is required by the laws, rules, and regulations in the securities industry.  In addition to the risks experienced in 2008-2009 referenced above, there was once again in 2014-2015 volatility in the energy industry and a precipitous decline in the price of oil at that time, the result of which saw the value of many investments MLPs (as well as high-yield or junk bonds, stocks, and other securities) tied to the energy industry also significantly decline in value.  The question now is whether there were any of these past events and risks including the history of volatility, loss, bankruptcies, part of the financial advisor’s pitch in recommending these securities?  Probably not, in many cases, those discussions are non-existent, and the pitch is limited only to the income stream.

Many of these investments were sold by financial advisors without proper risk disclosures, as these are considered risky securities.  In cases where these were recommended to retirees or similar conservative income-seeking investors there is the potential for sales practice abuse as a result of misrepresentations, but more often as a result of omissions of material fact, or due to a lack of proper supervision.

Investors Seeking to Recover DCP Losses

For some investors, a private FINRA arbitration customer dispute enables them to bring a claim and potentially recoup their investment losses.  These customer disputes typically involve only paper discovery and no depositions, and they are generally faster and more efficient compared to traditional court litigation, as they provide a private forum to resolve disputes more quickly and efficiently.

About Haselkorn & Thibaut, P.A.

Haselkorn and Thibaut, P.A. is a nationwide law firm specializing in handling investment fraud and securities arbitration cases. The law firm has offices in Palm Beach, Florida, on Park Avenue in New York, as well as in Phoenix, Arizona and Cary, North Carolina.  The two founding partners have nearly 45 years of legal experience.

Haselkorn & Thibaut, P.A. has filed numerous (private arbitration) customer disputes with the Financial Industry Regulatory Association (FINRA) for customers who suffered investment losses relating to issues similar to those matters mentioned above. There are typically no depositions involved, and those cases are typically handled on contingency with no recovery, no fee terms.  Experienced attorneys at Haselkorn & Thibaut, P.A. are available for a free consultation as a public service. Call today for more information at 1-800-856-3352 or visit our website and email us from there at www.investmentfraudlawyers.com.

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