Did Your Wells Fargo Broker Recommend the Now Bankrupt, Cubic Energy Inc.?

Soreide Law Group in interested in speaking with investors who were recommended purchasing stock in the now bankrupt oil and gas company, Cubic Energy Inc., by their brokers or financial advisors, particularly those with Wells Fargo.
Due to the fact that Cubic Energy Inc. was highly indebted to Wells Fargo, it has been alleged that they may have recommended this highly volatile energy stock to their clients to pay down their debt at the alleged direction of the firm.
After Cubic Energy Inc.'s bankruptcy plan took effect on March 1, 2016, shareholders of the Dallas-based oil and gas company experienced devastating losses.  Also sharing in the losses was Wells Fargo & Co., which had nearly ten percent of the company at the end of 2015, worth more than $25 million.  This was through a private equity unit called Wells Fargo Energy Capital.
Wells Fargo has billions of dollars worth of exposure in the energy industry through regular loans which are now going bad. But this shows, in the case of Cubic Energy Inc. in particular, that Wells Fargo went further into riskier areas than other banks, with their most volatile exposure in Wells Fargo Energy Capital.  This unit gave high-risk loans to small companies like Cubic Energy Inc., assuming the energy boom would go on forever.  Cubic Energy Inc. owed Wells Fargo nearly $30 million Nov. 30, according to its reorganization plan.  As part of the reorganization, Wells Fargo received land and other assets in Louisiana, however a value is not really known of those assets due to the volatile oil and gas industry.  This is raising concerns for shareholders and Wall Street analysts.
Wells Fargo Energy Capital, in 2014, employed the largest staff of petroleum engineers of any U.S. bank, and had 400 employees dedicated to serving energy companies according to Reuters. As oil prices dropped, Wells Fargo is no doubt regretting its involvement with the sector. The bank has set aside $1.2 billion in reserves for losses on energy loans. Estimates are that the bank will need to set aside another $600 million.
If you were recommended purchasing stock in the now bankrupt, Cubic Energy Inc., by your broker or financial advisor, particularly those employed by Wells Fargo, and you experienced devastating losses, call Soreide Law Group for a review of your portfolio at no-cost to discuss the possibility of recovering your financial losses at:  888-760-6552.