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Clearbridge MLP and Midstream Fund Losses

Levin Law | 4.20.2020

Levin Law, P.A. Is Investigating Brokerage Firms That Recommended and Sold Clearbridge MLP and Midstream Fund Inc (CEM) to Customers

The national securities law firm, Levin Law, P.A. (“Levin Law”) is investigating brokerage firms that recommended and sold the Clearbridge MLP and Midstream Fund (ticker symbol, CEM) to their customers.  If your stockbroker, investment advisor, or other financial professional recommended and sold the Clearbridge MLP to you and you suffered significant losses, please contact us at (305) 402-9050 or  In late February 2020, CEM was trading around $10 per share.  As of March 30, 2020, CEM was trading at around $2 per share, i.e., approximately 80% lower than its share price around a month before.  Many brokerage firms marketed and sold CEM as being a conservative investment.  Further, many financial institutions recommended and sold CEM to risk-averse investors, such as elderly retirees and those seeking income and capital preservation, without fully and adequately disclosing all the material risks of CEM .

CEM and Other Energy-Based MLPs are Risky and Complex Investments

CEM is a Master Limited Partnership (“MLP”).  MLPs offer the tax advantages of certain partnerships with the advantage of having liquidity.  But many MLPs are risky and can cause investors significant losses, particularly during times of market volatility.  Energy-based MLPs can be incredibly risky, but unfortunately many financial advisors inform their customers that the energy MLPs are “safe” or conservative.  When making recommendations to purchase securities, including MLPs, financial advisors have the duty to fully explain all materials risks of such investments.  Many financial advisors, however, failed to disclose the true risks inherent in MLPs, resulting in investors thinking that their MLP investments were “safe.”  Such investors were justifiably surprised when their so-called safe investments dropped more than 80% in value during the most recent market decline, resulting in part due to the spread of the Coronavirus.  Aggrieved investors may be able to recoup their losses by suing their financial institutions in a Financial Industry Regulatory Authority (“FINRA”) arbitration.

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