Why Did I Get a Tax Bill From Linn Energy When It Went Bankrupt?

 
The September 23, 2016 form 8937 filing (Report of Organizational Actions Affecting Basis of Securities) states in part 2 that “By order of the bankruptcy court, the common stock held by the Sabine shareholders were cancelled for no consideration.”  The company itself has filed bankruptcy to limit liability.  Soreide Law Group is investigating stock brokers who sold this investment and other risky investments.  Any broker who held this stock for a client and watched it go to $0 with no downside protection or risk strategy may be liable for losses.
Linn Energy got hit in the oil downturn hard due to its high debt level which ultimately caused its demise. So why did you get a tax bill since Linn Energy went bankrupt? Linn Energy exchanged $2 billion of its unsecured senior notes for $1 billion in senior secured second lien notes.  If this sounds too good to be true? It is, now the unit holders are got hit with a gain on the $1 billion dollar phantom profit. They also spent about $557 million in cash buying $783 million in debt so again another $226 million phantom profit.
 

Navigating these types of pit falls is why most investors use stock brokers or financial advisors. The act of recommendation to either buy hold or to not exchange the Linn Energy shares for more tax favored units carries liability. Soreide Law Group has been suing stock brokers, brokerage firms and financial advisors for recommending either the purchase of Linn Energy or to hold Linn Energy and not swap out the shares for the shares that don’t get you hit with a tax bill.
The cases that have been filed by Soreide Law Group are filed in through the Financial Industry Regulatory Authority also known as FINRA. This is the forum where cases against stock brokers for recommending bankrupt oil stocks must be filed. Our firm is not handling class actions which can result in pennies on the dollar back to the client. Instead we represent your interests in your own action through the FINRA forum nationwide. If you lost more than $50,000 in Linn Energy or have a tax bill larger than $50,000 due to Linn Energy and you bought the stock at the recommendation of a stock broker or financial advisor (not an online trading platform) call Soreide Law Group today at (888) 760-6552 or visit https://www.SecuritiesLawyer.com.