Lost Money in GWG Holdings L Bonds?

Legal Investigations on Behalf of GWGH L Bond Investors After Company Defaults on $13.6 Million in Payments

OAKLAND, Calif.--(BUSINESS WIRE)--Gibbs Law Group is investigating legal claims on behalf of investors of GWG Holdings L Bonds (“GWG L Bonds”). As part of our GWG Holdings L Bond investigation, we may be filing claims against brokerage firms if they made misrepresentations or issued misleading information when selling GWG L Bonds to investors. Many of the broker-dealer firms that sold L Bonds to investors marketed them as secure, low-risk products that provide a steady stream of income, but in reality, they are also highly illiquid, involve significant risk and speculation, and aren’t as closely regulated as publicly-traded bonds.

To speak confidentially with an experienced investment attorney at no cost regarding our GWG legal investigation, click here or call 866-779-0441.

GWG Holdings (Nasdaq: GWGH) is a publicly-traded financial services company that offers life insurance products, alternative investments, and other services. According to its prospectus, GWGH began publicly offering L Bonds in January 2012 under the name “Renewable Secured Debentures,” which were later renamed “L Bonds” in January 2015. In order to finance the purchase of life insurance policies and raise capital over the last decade, GWGH has primarily sold L bonds to retail investors by using a network of broker-dealer firms.

On February 14, 2022, GWGH announced in a letter to investors that it was pausing all sales, interest, maturity, dividend, and redemption payments to L Bond and Preferred Stockholders. The letter also states that GWG will inform investors “if and when” it is able to restart cash payments in the future. Previously, on January 24, 2022, GWGH disclosed in its annual report that it “did not make the January 15, 2022 interest payment of approximately $10.35 million and principal payments of approximately $3.25 million with respect to its L Bonds” product and that it would “voluntarily suspend its L Bonds sales effective as of January 10, 2022.”

This news of suspended L Bond sales and payments follows a slew of other financial issues reported by GWGH. In its 2020 end-of-year report, GWGH admitted that it was facing financial trouble due to an ongoing SEC investigation, the pause of L Bond sales, and a potential NASDAQ delisting. The company explained that its inability to sell L Bonds “in combination with significant recurring losses from operations, negative cash flows from operations, delays in executing our business plans, and any potential negative outcome from the ongoing SEC investigation[…]raise substantial doubt about our ability to continue as a going concern for the next 12 months following the filing of this Form 10-Q.”

What should GWG L Bond investors do?

If you invested in GWG L Bonds, visit our website or contact our securities team directly at 866-779-0441. Our firms, Gibbs Law Group and Silver Law Group, are representing investors in legal actions against brokerage firms that sold GWG Holdings L Bonds.

About Gibbs Law Group

Gibbs Law Group is a California-based law firm committed to protecting the rights of investors and consumers nationwide who have been harmed by corporate misconduct. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes class action and individual cases. Our attorneys have received numerous honors for their work, including “Top Boutique Law Firm in California,” “California Lawyer Attorney of the Year,” “Top Plaintiff Lawyers in California,” “Titans of the Plaintiffs’ Bar” “Consumer Protection MVP,” “Best Lawyers in America,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”

About Silver Law Group

Silver Law Group is a team of securities lawyers, forensic accountants, and support staff who are dedicated to helping investors recover losses through securities arbitration and litigation. Their attorneys have recovered millions of dollars for investors.

The firm is led by Scott Silver, a former Wall Street defense attorney who has been representing customers in securities and investment fraud cases since 2002. Silver Law Group’s attorneys have earned numerous accolades for their work representing investors nationwide, including “Legal Leaders Top Rated Lawyers,” “Super Lawyers,” and “Florida Legal Elite” awards.

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