Israels & Neuman, PLC Investigates Investment Losses in SandRidge Energy Inc.(OTCMKTS:SDOC)

Israels & Neuman, PLC, is a securities fraud law firm with offices in Denver and the Seattle area.  We hereby announce that we have launched an independent investigation into the potential bankruptcy filing of SandRidge Energy Inc.(OTCMKTS:SDOC) and those who were selling shares of stock in the company.

SandRidge Energy, Inc. is an oil and natural gas company that operates in three primary segments: 1. Exploration and production in the Mid-Continent (a physiographic province that extends from northern Texas and covers portions of Nebraska, Kansas and Oklahoma); 2. Drilling and oil field services for third parties; 3. Midstream services (processing, storing, transporting and marketing of oil), primarily related to gas marketing.  Its headquarters are in Oklahoma City, Oklahoma.

On January 25, 2016, Reuters reported that: “SandRidge Energy Inc is exploring debt restructuring options, according to people familiar with the matter…”  Reuters further reports that: “Oklahoma City-based SandRidge, which has a debt burden of around $4 billion, has already been reaching out to some of its creditors to inform them that they should work together to prepare for likely negotiations, one of the sources said. The vast majority of the company’s debt is in the form of bonds owned by a plethora of mutual funds, hedge funds, and other institutional investors. They do not yet have a single representative who could be reached for comment.”

As of January 25, 2016, the current stock price of SandRidge Energy Inc. has settled at roughly $0.05 per share.  The company is currently trading on the Over the Counter exchange (OTC Markets), having been removed from the New York Stock Exchange earlier this month.   SandRidge Energy Inc. stock prices have been on a steady decline for at least eight years, having been valued at nearly $65.00 per share in 2008, $8.00 per share in 2008, to losing nearly all of its value today.  SandRidge Energy Inc. is considered a micro-cap stock due to the fact that its current market capitalization is less than $300 million.  In fact, as of April 22, 2015, SandRidge Energy Inc.’s  market capitalization has fallen to only $36.28 million dollars.

It is highly unlikely that any investors in SandRidge Energy Inc. will receive any meaningful recovery from the bankruptcy proceeding, due to what is known as the “Absolute Priority Rule,” which prohibits distributions to equity investors, prior to full repayment of creditors of higher “priority.”

An investment in SandRidge Energy Inc.  was extremely risky.  If you purchased stock in SandRidge Energy Inc. on the advice of a financial advisor or stockbroker, you may be able to bring a claim for your losses through FINRA arbitration.   This is because financial advisors have a duty to disclose risks associated with these types of investments and must ensure that their clients’ portfolios are adequately diversified, so that the investor’s portfolio is not completely wiped out in the event of a downturn.

Aaron Israels and David Neuman are experienced securities arbitration attorneys and have represented investors in recovering their investments in micro-cap oil stocks, similar to SandRidge Energy Inc.  Israels & Neuman, PLC represents arbitration clients in all 50 states, including those located in Denver and Seattle.

HAVE YOU LOST MONEY WITH SANDRIDGE ENERGY, INC.?   

              CONTACT ISRAELS & NEUMAN, PLC FOR A FREE CASE EVALUATION

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