Haselkorn & Thibaut is investigating Talos Energy (NYSE: TALO) for potential sales practice violations by financial advisors who were recommending energy sector related investments to main street investors.
Looking back, the TALO stock price was generally in the $20.00 to $30.00 range since mid-2018 and through most of 2019. In the beginning of 2020, TALO was in the $30.00 range. More recently, TALO is trading under $7.00. Although the reference here is to the stock price, some investors have exposure in high yield bonds (or junk bonds) and other securities.
Talos Energy, Inc. (NYSE: TALO) is an independent energy exploration and production company that focuses on the exploration and production of oil and natural gas properties in the United States Gulf of Mexico and offshore Mexico. TALO was founded in 2011 and is based in Houston, Texas.
Talos Energy Lawsuit “FINRA” & Investors Notice
As mentioned above, Haselkorn & Thibaut is investing financial advisors that sold Talos energy stock and bonds. The recent decline has been a particularly tough blow to investors 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.
Many Financial advisors and stockbrokers may claim that these were unforeseen market events. The reality of the situation 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 all their clients before recommending these securities 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.
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.