National investment fraud lawyers KlaymanToskes notifies Atlas Growth Partners LP investors that they may have recovery options. The firm is investigating brokerage firms and brokers/financial advisors that recommended investments in Atlas Growth Partners LP following the company’s report of less than $4 million in net assets, despite raising $230 million from investors. This may indicate a $200 million loss of investors’ principal.
Brokerage firms and financial professionals who sold Atlas Growth Partners may be responsible for investor losses. Contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lklayman@klaymantoskes.com to discuss your legal options at no cost. We do not collect attorney’s fees unless we secure a financial recovery for you.
According to Atlas Growth Partners’ Form 10-K SEC filing for the fiscal year ended December 31, 2020, the company stated it was facing “significant risks and uncertainties related to our inability to satisfy our current liabilities” and that “if these liabilities are called, we will not have sufficient liquidity to repay all of our outstanding liabilities, and as a result, there would be substantial doubt regarding our ability to continue as a going concern.” This filing came after Atlas Growth’s failure to submit a number of required reports to the SEC.
The company reported net assets under $4 million. Accordingly, it is KlaymanToskes’ opinion that investors may have lost up to 99% of their principal investment (over $200 million) since the company’s initial offering which raised $230 million. In late 2021, Atlas Growth Partners reported net losses of $0.7 million and $6.4 million for the six months ended June 30, 2021 and 2020, with cash provided by operating activities of $0.2 million and cash used in operating activities of $0.8 million.
Atlas Growth Partners’ most recent filing with the SEC was a Form 15 (to indicate the termination of registration for a security) filed on December 21st, 2021. In our opinion, this filing is used by companies to revoke their registrations as publicly-traded corporations and is most often used by small companies who find SEC reporting regulations laborious. However, it is also used by companies in distress that may face imminent delisting and prefer to be delisted voluntarily.
According to Atlas Growth Partners’ Form D SEC filing (Notice of Exempt Offering of Securities), the following list of brokerage firms and financial advisory firms may have sold their customers Atlas Growth as part of the company’s $500 million initial offering. The filing also notes that the broker-dealers who sold Atlas Growth investments to their customers earned over $50 million in collective sales commissions.
Investors that suffered losses in Atlas Growth Partners due to recommendations by their broker/financial advisor at any of the firms listed below, or any other FINRA-regulated firm, may have recovery options through FINRA arbitration. Contact KlaymanToskes today at 888-997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss your potential case.
Brokerage firms and their registered financial professionals have a duty to provide their customers with suitable investment advice, based on customers’ financial needs and best interests. They cannot misrepresent material facts when making an investment recommendation or over-concentrate a portfolio in any particular investment or sector, such as oil & gas.
| Affected investors are encouraged to contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss recovery options. We do not collect attorney’s fees unless we obtain a financial recovery for you. |
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Lawrence L. Klayman, Esq.
888-997-9956