Sonn|Erez Investigating Claims Related to SandRidge Energy

Sonn Law Group is investigating investment losses related to SandRidge Energy (NYSE:SD). SandRidge Energy’s shares have fallen steadily with the price of oil and the company is struggling to manage its reported $3.9 billion debt. In January 2016, SDOC was delisted from the NYSE, due to “abnormally low” trading price levels and failing to meet the exchange’s minimum $1 bid requirement, according to MicroCap Daily. SandRidge now trades on the OTC (OTCMKTS:SDOC) where it closed Friday, March 19 at $0.11. SDOC made its initial public offering on November 5, 2007, offering over 28 million common stocks at roughly $26.00 US a share, according to MicroCap Daily.

Since 2015, SandRidge has cut hundreds of jobs to lower its operating costs. From around 1,880 employees in 2014, the company now has 717 employees, according to Oklahoma City’s KFOR. In February 2016, SandRidge delayed its interest payment of $21.7 million for 7.5% senior convertible notes due 2023 and 7.5% senior notes payable in 2023. Following the deferral of interest payment, SandRidge entered into a 30-day grace period. On March 15, 2016, the company paid $21.7 million pertaining to its 2023 Notes within the grace period, and made an additional payment of $28.4 million for its 7.5% senior notes payable in 2021, according to The Wall Street Journal. While SandRidge continues operations, it is unclear how it will fare in what is anticipated to be a continued low oil price environment.

More than 40 energy-related companies sought court protection from their creditors in 2015, as oil prices have dropped by 75 percent since mid-2014, according to Reuters. The number of energy companies declaring bankruptcy is expected to continue this year as analysts anticipate a continued low oil environment.

SandRidge Energy is an oil and natural gas company headquartered in Oklahoma City, Oklahoma with its principle focus on exploration and production activities in the Mid-Continent region of the United States, according to its website. SandRidge and its subsidiaries own and operate gas gathering and processing facilities, saltwater disposal and electrical infrastructure facilities and conduct marketing operations. Lariat Services, Inc., a wholly-owned subsidiary of SandRidge, also owns and operates a drilling rig and related oil field services business.

A broker must have reasonable grounds for each recommendation made to you. The broker generally determines whether the recommendation is suitable based on your other securities holdings, financial situation, and risk tolerance. In addition, before a firm offers a security to its customers, the firm must conduct due diligence, that is investigate the facts surrounding the security, to confirm that it is suitable for any customer of the firm. The suitability of an investment for a particular individual is at the center of the investment process and one of the key fiduciary duties owed by a firm and its broker to the customer. A firm may be held liable for its failure to recommend suitable investments to its customers.

If you invested in the SandRidge Energy or have experienced losses in other energy-related investments, please call us at 844-689-5754 or complete our “contact form.” Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies.

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