Florida Master Limited Partnership Lawyer
A master limited partnership (MLP) is a type of hybrid corporate entity that enjoys the pass-through taxation benefits of a limited partnership while maintaining the liquidity of a public corporation. Generally speaking, any company that is publicly traded will be taxed as a corporation, yet MLPs are one important exception. Not every type of business is eligible for MLP status and, in fact, the Internal Revenue Service strictly limits the industries that can receive MLP tax benefits. IRS regulations require that a company be engaged in certain activities directly related to natural resources or minerals and 90 percent of the company’s revenue must be from such activities. Contact our Florida master limited partnership lawyer for more information.
Potential Claims Involving MLPs
The vast majority of master limited partnerships are somehow involved in the energy industry, including oil, coal, gas, or other forms of energy. Many of these companies work on pipelines, refineries, or processing plants for various energy sources. This means that the prices of MLP shares often directly correlate to the price of oil or similar resources and, unfortunately, those prices have substantially declined in recent years.
With this decline, many investors were surprised to learn their investments significantly suffered. This is because their brokers likely encouraged them to invest in an MLP and failed to properly warn them of all of the financial risks in doing so. While no investment is completely reliable and comes with some risk, investors should be fully apprised of the type of investment their broker may be suggesting. Before suggesting an MLP, brokers should carefully consider many factors about a particular investor. Such factors may include their age, risk adversity, financial security, the rest of their portfolio, their investment goals, and more. Based on these factors, a broker should have reasonable grounds for suggesting an MLP to a particular investor.
Due to the often large fluctuation in oil prices, MLP investment should be carefully considered and is only appropriate for investors with a certain risk tolerance. For example, it may be negligent for a broker to steer an older individual who depends on the safety and security of their savings into an MLP. If you have lost a significant amount of money because your broker wrongfully encouraged you to invest in an MLP or failed to give you all of the relevant information for you to understand your decision, you may have the right to hold them accountable for their actions.
Contact A Florida Master Limited Partnership Lawyer As Soon As Possible
Gregory Tendrich is a highly experienced securities fraud attorney who handles claims involving investments in master limited partnerships in and around Boca Raton, Florida. If you believe you have been the victim of fraud or have been seriously misguided by a broker, you should not delay in discussing your situation with our office. At the present time we are investigating the following MLPs:
Memorial Production Partners, EV Energy Partners, Vanguard Natural Resources, Atlas Resource Partners LP (ARP), Linn Energy LLC (LINE), Cone Midstream Partners (CNNX), Breitburn Energy Partners (BBEP), Crestwood Equity Partners (CEQP), Enterprise Products Partners (EPD), Plains All American Pipeline, L.P. (PAA), Energy Transfer Partners (ETP), Center Coast MLP & Infrastructure Fund, ClearBridge American Energy MLP, Cushing MLP Total Return Fund, Goldman Sachs MLP and Energy Renaissance Fund, Kayne Anderson MLP Investment Co., Oppenheimer SteelPath MLP Income Fund, Morgan Stanley Cushing MLP High Income ETN (exchange traded note)
In addition to MLP investments, we regularly handle cases involving unsuitable investments, churning, hedge funds, Ponzi schemes, securities arbitration, broker fraud, misrepresentation, exploitation of the elderly, and more. These cases can be complex and can involve complicated legal issues, so it is essential that your rights are represented by a lawyer with experience handling your specific type of claim. Please call for a free consultation at 561-475-1332 today.