Lilis Energy, symbol LLEX and now LLEXQ, announced they are filing for Chapter 11 bankruptcy protection in Texas. The stock opened trading around $220 and was recently trading around $.04 rendering the stock almost worthless. Stock brokers that recommended this risky security and failed to limit losses for clients may be liable for those losses. For a broker to act as a fiduciary they must do what is in the best interest of the client and manage the risks involved with a security. Customers that still have this in their portfolio may be likely to have other such risky investments as well and could have lost their retirement money or other funds.
This bankruptcy plan has to be approved by the court still. The plan is to restructure without disrupting business as usual. Bankruptcy filings typically cost equity holders further so any chance of recovering your initial investment would be far-fetched. If the plan does not work out Lilis will be forced to sell off its assets to cover obligations.
The current oil price decline has not helped Lilis yet the company maintains they have sufficient liquidity to continue operations through the restructuring
process.
If you or a loved one were recommended risky investments like Lilis Energy you may be entitled to recover damages from your stock broker. Did your broker fail to limit losses or overconcentrate your portfolio in risky oil and gas stocks? These are clues that your broker may have been negligent with your portfolio. Please contact Soreide Law Group PLLC today to discuss your case. The securities lawyers at Soreide Law Group can handle your case anywhere in the USA before FINRA. Please visit https://www.securitieslawyer.com or call 1-877-760-6552 for a free consultation with a lawyer. No fee if no recovery and Soreide Law Group advances all costs.
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