Last month, GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection. In light of the filing, investors may be at risk of sustaining a complete loss of principal. Investors in GWG L Bonds are strongly encouraged to contact an experienced attorney to discuss filing a FINRA arbitration claim.
The investor claims attorneys at Meyer Wilson are investigating claims that brokers and financial advisors made material misrepresentations, failed to adequately disclose the risks, or engaged in unsuitable investment recommendations when selling GWG L Bonds to clients. Aggrieved investors may be able to recover losses through FINRA arbitration with the help of an attorney.
If you sustained losses after investing in GWG Holdings, Inc., contact our office at (614) 532-4576 for a free, no-obligation consultation.
GWG Holdings, Inc. is a financial services firm based in Dallas, Texas. It owns a diverse portfolio of life insurance policies, according to its website. As of September 2021, the portfolio was estimated at $1.8 billion in “face value of life insurance policy benefits.”
Products offered by GWG Holdings included the sale of L Bonds, which are publicly registered, non-traded corporate bonds. Investment in L bonds is speculative with a high degree of risk and are unsuitable for most investors. The company acknowledges in their SEC filings there is no established trading market for the L Bonds they issued and that investors may be unable to resell them. Debt securities, such as the L Bonds issued by GWG Holdings, are often subjected to market disruptions that can result in “substantial price volatility.”
The company showed signs of trouble over the past two years, as they faced potential delisting from NASDAQ for non-compliance with listing requirements. In December 2021, the company issued a press release stating that it had completed its financial filings and was resuming its L Bond offering. At that time, the company acknowledged “substantial doubt” whether it could meet its obligations over the next year due to an inability to raise capital, recurring losses, and an SEC investigation.
In early 2022, the company announced that it would be pausing L Bond sales and would not be making “monthly interest and maturity payments.” Shortly after, GWG Holdings filed for Chapter 11 bankruptcy as part of a restructuring process. It is doubtful whether GWG L Bond investors will be able to recover losses through the company due to the bankruptcy proceedings.
GWG Holdings investors might be entitled to compensation through FINRA arbitration if their financial advisor or stockbroker made misrepresentations or engaged in unsuitability when recommending and selling investments in GWG L Bonds.
Meyer Wilson is currently investigating claims that brokers and financial advisors failed to adequately disclose the risks associated with L Bond investments, including that they were speculative and illiquid. Investors may also have a claim for unsuitability or lack of due diligence.
If you invested in GWG Holdings and sustained financial losses, contact our office at (614) 532-4576 for a free consultation. Cases are handled on a contingency fee basis, meaning you pay no fees unless money is recovered on your behalf. The investor claims attorneys at Meyer Wilson have represented over 1,000 clients, recovering millions of dollars in losses.