Did you lose money investing in Chesapeake Energy Corp. (CHK) Stock and Bonds?
Galvin Legal, PLLC is launching an investigation on behalf of investors who suffered losses investing in Chesapeake Energy Corp. (CHK) Stock and Bonds at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the brokerage firm that recommended the investment.
Chesapeake Energy Corp. (CHK) is an Oklahoma-based company that was founded in 1989. It became a pioneer in fracking, a controversial process of injecting pressurized water and chemicals into previously unobtainable natural gas reservoirs in order to extract them. At its peak, the company was one of the most influential energy companies in the United States, but it has been hit amid declining energy prices and COVID-19. The company was trying to pivot from natural gas to a greater emphasis on oil when the Saudi-Russian energy price war unneeded those plans the the oil market as a whole. But the company’s main problem is its debt load, which it accumulated during an aggressive pace of acquisitions. The company owes almost $9 billion–more than ten times the company’s current value (as of 6/9/2020).
As energy prices have declined so has the value of energy investments. Many investors have suffered significant losses in energy investments that were recommended to them by the financial advisor. Many of these investments were high risk and were unsuitable for their portfolios.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
UPDATE 6/29/2020: According to Bloomberg, Chesapeake Energy Corp. (CHK) filed for bankruptcy, becoming one of the biggest victims of a spectacular collapse in energy demand. The Oklahoma City-based company filed for Chapter 11 protection from creditors in U.S. Bankruptcy Court in the Southern District of Texas on Sunday, listing assets and liabilities in the range of $10 billion and $50 billion, and more than 100,000 creditors. The company also entered into an agreement to eliminate about $7 billion in debt an secure $925 million in debtor-in-possession financing. Chesapeake Energy Corp.’s (CHK) share price has dropped more than 93% since January, from $172 to $11.85 as of close on Friday. Earlier this month, the company skipped interest payments of $13.5 million, according to filings with the SEC. The company had a 30-day grace period before it would be considered in default. The company posted an $8.3 billion net loss during the first quarter of 2020. It also reported nearly $9.5 billion in long-term liabilities, and just $82 million in cash. The case is Chesapeake Energy Corp, 20-33233, U.S. Bankruptcy Court, Southern District of Texas.
UPDATE 6/9/20: There are been rumors regarding Chesapeake Energy Corp. (CHK) preparing a potential Chapter 11 bankruptcy filing. Trading of shares of Chesapeake Energy Corp. (CHK) were halted on Tuesday after plunging by half on a report the company could be about to go bankrupt. Recently those rumors have included a possible missed interest payment to bondholders on at least one tranche of the company’s bonds. Purportedly the company is considering an arrangement whereby some of its biggest creditors would take control fo the company, potentially wiping out shareholders in the process.
UPDATE 10/11/16: The U.S. Department of Justice has opened an investigation into possible antitrust violations by Chesapeake Energy (CHK).
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as Chesapeake Energy Corp. (CHK) Stock and Bonds, and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as Chesapeake Energy Corp. (CHK) Stock and Bonds, or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in Chesapeake Energy Corp. (CHK) Stock and Bonds and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
