ttention: Soreide Law Investigating Clearway Energy Investment (NYSE: CWEN) Recommendations
Soreide Law Group is investigating possible claims on behalf of investors who bought investments in Clearway Energy, Inc. (NYSE: CWEN) by way of their broker’s or adviser’s recommendations.
Clearway Energy, Inc. is a publicly traded company focused on sustainable, modern and long-term assets located in North America. Apparently, the company’s asset portfolio is comprised of more than seven thousand megawatts of solar, wind, and natural gas powered generation facilities. Clearway Energy, Inc. claims that its contracted and diversified portfolio enables it to provide investors growing and stable dividend income.
Two classes of Clearway Energy, Inc. shares – Class C (NYSE: CWEN) and Class A (NYSE: CWEN.A) common stock – trade on the New York Stock Exchange. An independent infrastructure fund manager, Global Infrastructure Partners (“GIP”), who is the Clearway Energy, Inc. new controlling investor, sponsors Clearway Energy, Inc. Notably, CWEN is a renewable energy yieldco – which is a dividend grow-oriented company that a parent company primarily creates to couple conventional or renewable long-term contracted operating assets for purposes of generating steady cash flows.
Concerns About CWEN Shares Plummeting In Value
Investors should be concerned that CWEN shares dropped significantly in value as of late. Specifically, as of February 4, 2019, shares of CWEN closed at $15.04. Notably, the company’s 52-week high is $20.75 and its 52-week low is $13.44. Much of the decline in CWEN took place since October 2018; CWEN shares dropped 12.46% in January 2019.
CWEN reportedly experienced financial strain due to its association with Pacific Gas & Electric (“PG&E”). Specifically, the latest 10-Q for Clearway Energy Inc. has the company placing twenty-two percent of its net capacity in PG&E. However, PG&E has filed for Chapter 11 bankruptcy protection in part due to the California wildfires. Also, PG&E is possibly liable for a camp fire killing several dozen individuals. Consequently, investors are concerned that by PG&E filing bankruptcy, it will have to renegotiate or cancel contracts with Clearway Energy. Other risks of CWEN investments include portfolio concentration, weather variation and interest rate risk.
Brokers and Advisors Selling Unsuitable or Misrepresented CWEN Securities
Given the risks of this speculative high yielding investment, it is critical that investment advisors provide investors with information about risks prior to making investment recommendations. Advisors and brokers have a duty to engage in reasonable due diligence on investments they recommend. However, not all advisors and brokers follow the rules. Because of this, brokers and advisors sometimes make unsuitable recommendations and misrepresentations about investments including CWEN.
If you have experienced losses by investing in CWEN or CWEN.A shares, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advance all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.