Fs Energy and Power Lawsuit

Fs Energy and Power Lawsuit

The Murky Waters of FS Energy & Power: Lawsuits Swirl Around a Controversial Fund

Remember that get-rich-quick scheme your shady uncle swore by? FS Energy & Power might just be its Wall Street cousin, a non-traded business development company (BDC) that’s landed itself in a sea of lawsuits. But before you dive in headfirst, let’s untangle the kelp and see what all the fuss is about.

FS Energy & Power promised investors a cushy ride on the oil and gas boom. Launched in 2011, it lured folks with whispers of fat returns by investing in energy companies. Think drilling rigs, pipelines, the whole fossil fuel shebang. It seemed like a sure bet, right? Well, not quite.

Fast forward a few years, and the tide started turning. The oil market sputtered, and FS Energy & Power’s investments went belly-up. Share prices plummeted, distributions to investors dried up faster than a mirage in the desert, and whispers turned into angry shouts. Lawsuits, as thick as Texas crude, started bubbling up.

Investors cried foul, accusing FS Energy & Power of everything from misrepresentation (painting a rosy picture that never materialized) to unsuitable sales practices (pushing the fund to folks who couldn’t handle the heat). Brokers, the middlemen who peddled the fund, also came under fire for allegedly turning a blind eye to the risks and prioritizing fat commissions over their clients’ well-being.

The legal battleground is still messy, with various suits winding their way through the courts. Some target the fund itself, others point fingers at the brokers, and a few even reach up to the tippy-top of FS Investments, the company that manages the fund.

So, what’s the takeaway for you, the curious investor? FS Energy & Power serves as a cautionary tale, a reminder that the path to riches isn’t always paved with oil pipelines. Before jumping into any investment, especially one as opaque as a non-traded BDC, do your homework. Ask tough questions, understand the risks, and don’t let anyone pressure you into something you’re not comfortable with. Remember, your hard-earned money deserves better than a gamble on a sinking ship.

Got questions? Here are some FAQs:

Q: Can I still sue FS Energy & Power?

A: It depends on the specifics of your situation and the current status of the lawsuits. Consulting with an attorney specializing in securities law is recommended.

Q: Did anyone win a lawsuit against FS Energy & Power?

A: Some settlements have been reached, but no major court rulings have come down yet.

Q: Are non-traded BDCs inherently risky?

A: Yes, they carry higher risks than traditional stocks or mutual funds due to their illiquidity and limited transparency.

Q: What should I do if I lost money in FS Energy & Power?

A: Contact a securities lawyer to discuss your options. Gathering relevant documents and keeping track of developments in the lawsuits is also advisable.

Q: Is there a regulatory body overseeing non-traded BDCs?

A: The Securities and Exchange Commission (SEC) oversees BDCs, but its regulations offer limited protection for investors compared to publicly traded securities.

Remember, navigating the murky waters of lawsuits and financial complexities can be overwhelming. Don’t hesitate to seek professional help to protect your rights and navigate this challenging situation.

Want to dive deeper? Check out these resources:

Shepherd Smith Edwards & Kantas:
Levin Law:
FS Investments:
SEC Filing:

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