Ridgewood Energy Investment Loss Recovery Options

September 20, 2012  |  Oil and Gas Deals / Private Placements

Investors who have suffered losses investing in Ridgewood Energy may be able to recover their losses through FINRA arbitration.

Oil and gas deals or drilling limited partnerships are typically sold through a private placement securities offering. Although private placements serve a valuable role in the capital formation process, they are by their nature very risky investments in that there is virtually no oversight from a regulatory agency. Moreover, investors in private placements often face significant problems exiting the investment as the securities they purchased in the private offering cannot be easily resold or liquidated as would be the case with a publicly traded security.

While investors can be attracted to private placements due to their potential for much higher returns than other investments, private placements also can be fertile ground for fraud due to a lack of thorough due diligence or complete disclosure in the offering documents. Moreover, the sales process of private placements creates an inherent risk of misrepresentations, and outright fraud. Brokers who sell private placements typically have the chance to earn very high commissions, ranging anywhere from 5%-15% of the entire investment. These high commissions create a conflict with the broker’s duty to recommend only investments that are suitable for the customer. Customers need to remember that their wealth is not a proxy for an appropriate suitability determination.

Investors should be aware that oil and gas deals and drilling partnerships have always been a gamble. Investing in an oil and gas deal or limited partnership is a very speculative venture that carries the risks associated with a highly illiquid investment that may have a long holding period. Investors should exercise great caution when investing in an oil and gas deal or energy limited partnership.

Ridgewood Energy Funds

Retail investors nationwide may have invested in the various Ridgewood Energy Funds. Upon information and belief, investors reported that certain Ridgewood Energy limited partnership deals that they have invested in may not have produced returns in excess of investor's original capital. As a result, certain Ridgewood Energy investors are now stuck with illiquid limited partnership interests that may not be producing the income they were promised by their financial advisor.

The following Ridgewood Energy deals are believed to have been sold to investors nationwide through their financial advisors:

• Ridgewood Energy Fund I
• Ridgewood Energy Fund J
• Ridgewood Energy Fund K
• Ridgewood Energy Fund L
• Ridgewood Energy Fund M
• Ridgewood Energy Fund N
• Ridgewood Energy Fund O
• Ridgewood Energy Fund P
• Ridgewood Energy Fund Q
• Ridgewood Energy Fund R
• Ridgewood Energy Fund S
• Ridgewood Energy Fund T
• Ridgewood Energy Fund U
• Ridgewood Energy Fund V
• Ridgewood Energy Fund W
• Ridgewood Energy Fund X
• Ridgewood Energy Fund Y
• Ridgewood Energy Fund Z

If you have suffered losses investing in a Ridgewood Energy fund, please contact the firm today for a FREE, NO OBLIGATION CONSULTATION to discuss your recovery options.

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