Did Your Advisor Sell You Rex Energy (REXX)?

Soreide Law Group Looking At Possible Investor Lawsuits Relating To Rex Energy

Soreide Law Group is reviewing investor lawsuits against financial advisors and securities brokers who may have been unsuitably sold investments in R.E. Gas Development LLC, also known as Rex Energy Corporation (NYSE: REXX). Notably, in May of 2018, the State College-based company filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court in the Western District of Pennsylvania.

Who Is Rex Energy?

Apparently, Rex Energy Corporation was a natural gas exploration and production company located in Western Pennsylvania. The company, founded in 2007, focused its operations in the Marcellus Shale, Burkett Shale, Utica Shale and Appalachian Basin. It had approximately 100 employees as of year-end 2017.

Rex Energy Bankruptcy Filing

For the few years preceding its bankruptcy filing, Rex had been selling off assets left and right. Namely, it sold Keystone Clearwater Solutions in June 2015 to American Water Works for $130,000,000. In 2016, the company unloaded $40,000,000 of assets in the Illinois Basin. Moreover, in January 2017, it sold $30,000,000 worth of its Ultica Shale-based assets to Antero Resources. However, in May 2018, after being unable to strike an arrangement with its lenders, it ran out of options to generate cash. Apparently, prior to the filing, the alarm went off as the company failed to make interest payments and failed to timely hand over financial statements. It appears that in August of 2018, Rex’s remaining assets were purchased by PennEnergy.

Financial Advisors Possibly Made Unsuitable Recommendations

Significantly, financial advisors could have unsuitably recommended for clients to purchase Rex Energy Corporation notes or other securities. These professionals could have ignored their clients’ goals, risk tolerances or needs. Also, financial advisors potentially pushed these energy sector investments because of the prospect of high returns but without explaining risks. Unfortunately, energy sector investments can be extremely volatile. Investors could have sustained substantial losses by purchasing Rex Energy securities because of their advisor.

Losses From Investing In Rex Energy Because Of Your Financial Advisor?

Did you sustain losses by investing in Rex Energy securities because of your financial advisor? If you have, reach out to 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 advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of brokers and brokerage firms.