Haselkorn & Thibaut, an investment fraud law firm, is investigating potential sales practice violations by financial advisors who were recommending Credit Suisse X-Links Monthly Pay 2xLeveraged Alerian MLP Index ETN (AMJL) and other energy industry-related investments to main street investors.
Looking back, the AMJL stock price was normally in the $20.00 to $30.00 range since mid-2016 and through most of 2018. In 2019 AMJL price was around $10.00 to $15.00. At the beginning of 2020, AMJL was $11.00. More lately, AMJL stock ETN has stopped trading at $1.20 and the year-to-date total return is over -80%.
Credit Suisse X-Links Monthly Pay 2x Leveraged Alerian MLP Index ETN (Symbol: AMLJ) — seeks to offer a monthly compounded 2x extended long exposure to the price return edition of the Alerian MLP Index (the “index”). The index measures the performance of leading energy Master Limited Partnerships, or MLPs (the “index constituents”), as chosen and ranked by the index sponsor in accordance with the index methodology. The index components represent approximately 85% of overall energy MLP float-adjusted market capitalization.
Notice to Credit Suisse X-Links Monthly Pay 2xLeveraged Alerian MLP Index ETN (AMJL)
The Haselkorn & Thibaut is investigating potential sales practice violations by financial advisors who were recommending Credit Suisse X-Links Monthly Pay 2xLeveraged Alerian MLP Index ETN (AMJL) and many similar energy industry investments sold to investors.
The recent losses by AMJL can be a particularly harsh blow to investors as these are the types of investments that were often suggested by financial advisors who did not disclose the potential amount of risk that was accomplished and investors were unaware of the real amount of risk to which their investment principal was exposed as it was never properly disclosed (if it was disclosed at all) by their own financial advisors.
Although financial advisers may assert these were unforeseen market events, the truth is these are similar risks to those experienced at the 2008-2009 monetary crisis. These potential risks were material risks that should have been properly disclosed to clients before recommending these investments separately or as part of a portfolio or investment plan.
Oil, gas, and energy connected investments were promoted in recent years as an attractive source of dividend income at an otherwise low-interest rate environment. It’s important to note that in making such recommendations to investors, a fair and balanced disclosure of material risks is required by FINRA laws, rules, and regulations in the securities industry.
The question now is if there were any of those previous events and risks including the background of volatility, reduction, bankruptcies, a portion of the financial advisor’s pitch in recommending these securities?
Investors Trying to Recover AMJL Losses
For many investors, a private FINRA arbitration customer dispute enables them to bring a claim and possibly recover their AMJL investment losses. These consumer disputes typically involve only paper discovery without depositions, and they are generally quicker and more efficient in comparison to traditional court litigation, as they provide a private forum to resolve disputes faster and economically.
The sole purpose of this press release is to investigate the manner in which Credit Suisse X-Links Monthly Pay 2xLeveraged Alerian MLP Index ETN (AMJL) were approved for sale by FINRA broker-dealers to investor clients, including new product reviews, due diligence, as well as the sales practice and supervision issues related to the recommendations and sales of AMJL and the transactions with investors related to same.
Haselkorn & Thibaut law firm has offices in Florida, New York, Arizona, and North Carolina. The founding partners have almost 45 years of legal expertise in investment law. Investors can call for 1 888-628-5590 for a free consultation or visit their website at www.investmentfraudlawyers.com.
Donald S. Wiggins loves learning about business trends. He has 5 years of experience in financial news and worked his way up from a writer to a senior staff member. He is one of the original writers of alphabetastock.com with a goal to increase readership and financial news coverage throughout 2019. Wiggins is the editor and manager of “Services” category.