Did You Invest in Ridgewood Energy Funds?

Ridgewood Energy Corporation, of Ridgewood, New Jersey, manages private investment funds that develop and drill oil and gas projects located in the United States waters in the Gulf of Mexico.

Many broker/dealers have sold Ridgewood Funds to their clients without conducting the a proper suitability analysis for such investments. These funds were not suitable for the portfolios of unsophisticated investors. Since these were 'private placement' funds, clients for these funds should have been 'accredited investors.' Many of these clients did not have the net worth or annual income to invest in these risky, illiquid, private placements.

The oil and gas partnerships offered as private placements can have a very long holding period. Investors must be made aware that it is possible to have a total loss with these types of funds. Yes, the reward can be enticing if successful, but the losses can be devastating, particularly to those investors who cannot afford the loss, such as retirees, investors with a conservative portfolio, or investors on a fixed income.

We are looking closely at the Ridgewood Energy Fund sales tactics for the following:

Ridgewood Energy Funds I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y and Z.

Ridgewood Energy Fund K and M were terminated October, 2012. Other funds are also experiencing poor performance. Oil and gas are speculative, and various letters were sent out to clients discussing 'poor performance,' 'dry-holes,' 'high costs,' and 'failure to meet expectations.' Ridgewood also announced they were seeking additional financing for some of the funds.

Recently FINRA released an article warning investors about private placements. FINRA said that with oil and gas private placements, the investor should find out what they can expect to receive in return for the investment, and the circumstances resulting in a loss of some or all of the investment. The investor should review the map of the proposed well locations for drilling activity, and ask whether or not they have been successful in the area. Also, ask how and when you will be informed of the status of the drilling efforts and whether or not audited financials will be provided of the offering.

If you have investment losses in Ridgewood Energy Funds due to your stock broker/financial advisor’s recommendations in these private placements, or other illiquid, complex products, call for a free consultation on how to potentially recover your losses. To speak with an attorney call Soreide Law Group at 888-760-6552.