Investors May Have Been Subject to Unsuitable Recommendations & Misrepresentations
If you are a UBS customer whose broker persuaded you to invest in Noble Corporation, you likely have lost money. The offshore drilling company filed for Chapter 11 bankruptcy protection on July 31 in Houston, Texas.
Noble Corp. took a huge financial hit this year as COVID-19 caused oil and gas prices to plunge in value, making oil wells below the sea too costly. However, the company’s financial woes did not stop UBS Financial Group from recommending Noble stock shares to investors all the way leading up to its bankruptcy filing.
If you are one of these investors, your UBS broker may have made misrepresentations and/or unsuitability recommended Noble Corp. to you. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm) today for your free case assessment.
UBS Analysts Continued to Encourage Investors to Purchase Noble Stock and Shares
According to Business Insider, even at the end of June, UBS analysts were still rating Noble stock and shares with a “Buy” rating. This type of rating is typically a recommendation by an investment analyst to purchase a security while implying that the investment product has been undervalued.
Noble Corporation is one of over 200 oilfield services companies that have filed for bankruptcy in the last five years. The offshore drilling contractor’s bankruptcy plan involves getting rid of over $3.4B of debt.
Oil and Gas Investment Fraud
Oil and gas investments were suffering even before the pandemic. A number of them have experienced declines greater than 50%.
Many investors in the oil and gas sector have seen their returns disappear. These losses have come as a shock for the many retail investors, including retirees, that were told that these investments were safe, low risk, and should guarantee them an income. The truth is that oil and gas investments tend to be risky and generally not suitable for conservative investors or even many of those that can take on a moderate level of risk.
Even with Noble Corp clearly in trouble, UBS Financial Group representatives may have unsuitably recommended this investment while not clearly communicating the risks involved. In Texas, contact SSEK Law Firm at our Houston office at (713) 227-2400 or in Dallas at (214) 613-5306. Our oil and gas investment fraud lawyers represent investors nationwide. Call us at (800) 259-9010.