This market sector should not constitute more than 10% of an investor’s portfolio because it is cyclical and speculative. Investors whose brokers recommended oil and gas stocks and have losses should contact Diane Nygaard at (913) 485-5014 for a free consultation.Contact Us
Ridgewood Energy shares have lost most of their value. Ridgewood raised money from investors to invest in oil and gas projects. This is a capital-intensive, speculative business. Its stock is very speculative.
The company’s website says Ridgewood was “founded to meet specific sector objectives of institutional and high net worth investors.” Unfortunately for investors, though, many brokers have sold Ridgewood Funds tounsophisticated investors who did not have a high net worth.
Broker-dealers and investment advisors are required by the Financial Industry Regulatory Authority (FINRA) to do “due diligence” on any particular investment before selling it. Brokerage firms are also required to only recommend investments that are suitable for their clients. Suitability is determined by such factors as age, financial situation, liquidity needs, other ventures, risk tolerance, and investment experience.
Ridgewood shares were speculative. Only investors could who could afford to lose all their money should have bought them. However, brokers sold them to millions of ordinary people because they made large commissions.
The Ridgewood Energy K Fund and M Fund have been terminated. In a letter to Ridgewood M Fund investors, Ridgewood expressed its disappointment in the performance of the fund. Three of the five wells drilled were dry holes. The two wells which found gas failed to meet expectations. The K Fund appears to have encountered similar performance issues. According to form K-8, half of the 14 wells drilled in the K Fund were dry holes. Ridgewood investors have lost most of their money.
This is not the first time Ridgewood Energy Fund investors have received bad news. Letters sent out to investors in Funds O, Q, S, T, V and W announced that Ridgewood was forced to seek outside financing due to the cost of oil exploration.
Brokerage firms and investment advisors who sold Ridgewood shares to people who were not wealthy, sophisticated investors, can be held accountable for losses.
Kenner Nygaard DeMarea Kendall is representing investors in the following Ridgewood Energy Funds:
- Ridgewood Energy I Fund
- Ridgewood Energy J Fund
- Ridgewood Energy K Fund
- Ridgewood Energy L Fund
- Ridgewood Energy M Fund
- Ridgewood Energy N Fund
- Ridgewood Energy O Fund
- Ridgewood Energy P Fund
- Ridgewood Energy Q Fund
- Ridgewood Energy R Fund
- Ridgewood Energy S Fund
- Ridgewood Energy T Fund
- Ridgewood Energy U Fund
- Ridgewood Energy V Fund
- Ridgewood Energy W Fund
- Ridgewood Energy X Fund
- Ridgewood Energy Y Fund
- Ridgewood Energy Z Fund
If you have suffered losses in Ridgewood Energy shares and would like to learn more about your legal options, including participation in a class action, please contact Diane Nygaard at (913) 485-5014 for a free consultation.Contact Us