Goodman & Nekvasil P.A, May Recover Investor Losses – Miller Energy Resources, Inc. (MILLQ)
Goodman & Nekvasil, P.A. has filed several group arbitration claims alleging that Wells Fargo Advisors, LLC failed to conduct a reasonable due diligence before recommending Miller Energy Preferred Stock to our clients.
If you invested in Miller Energy Resources, Inc. (MILLIQ) stock at the recommendation of your financial advisor, you may have a legal claim against his or her brokerage firm. This is because brokerage firms have a duty to reasonably investigate these securities they recommend. Even the most cursory investigation of Miller Energy would have revealed the following public information which raised red flags about this stock:
- Miller Energy purchased Cook Inlet Energy and former Alaskan Assets of Pacific Energy Resources for $6.55 million on December 10, 2009, and valued these assets on April 30, 2010 (less than 5 months later) at $465.26 million, recognizing a $458.71 million pre-tax gain on the acquisition.
- Watchdog blogs thought Miller Energy was overvalued. On July 28, 2011, TheStreetSweeper, a financial blog dedicated to “exposing corporate fraud,” published an article investigating Miller Energy and the Cook Inlet Energy acquisition. The article pointed out that Nabors Industries, a large company with $4 billion in annual revenue, backed away from purchasing these very assets before the bid ever reached $5 million.
- Between December 2009 and September 2013, Miller Energy never had an operating profit. Between December 2009 and September 2013, for example, total cash flow from operations was -$1.1 million, was negative in 6 of the last 10 quarters, and was trending down.
- Between December 2009 and September 2013, the short interest on Miller’s common stock increased from less than 1% to 20%. This meant that 1 in 5 shares had been lent to somebody who thought the share price was too high. Ignoring the 30-40% of shares held by directors, officers, and large shareholders, this meant that 40% of the public float was shorted by September 2013.
If you invested in Miller Energy Preferred or Common Stock at the recommendation of a financial advisor, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action against the brokerage firm that sold this investment to you. There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA, has practiced in this area of the law for more than 35 years. Our firm has recovered more than $300 million for victimized investors. We would like to discuss the possibility of your retaining our firm to represent you in an arbitration action against the brokerage firm that sold Miller Energy Preferred or Common Stock to you.
If you lost money on an investment in Miller Energy Resources, Inc. (MILLQ), and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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