What is GWG Holdings?

GWG Holdings, through its subsidiary, GWG Life, LLC, previously owned and managed a portfolio of life insurance policies. GWG developed financial products called L Bonds, which pooled investments to purchase life-insurance policies on the secondary market. The idea was that payouts from life insurance claims would fund investor returns. However, GWG Holdings faced significant financial distress, culminating in itsChapter 11 bankruptcy  filing on April 20, 2022. According to its petition filed in April 2022, GWG described itself as “as a financial services firm with two principal types of assets: (1) secondary life insurance assets; and (2) economic interests in independent non-affiliated entities that operate in the alternative assets and epigenetics spaces, respectively.”

GWG Holdings, Inc. Filed for Bankruptcy on April 20, 2022

On April 20, 2022, GWG Holdings, Inc. and its affiliates (GWG Life, LLC and GWG Life USA, LLC) filed Chapter 11 bankruptcy in the Texas Southern Bankruptcy Court.

• GWG Holdings had between 25,001 and 50,000 creditors
• Liabilities were estimated between $1 billion and $10 billion
• Total listed assets: $3.49 billion
• Total listed debts: $2.06 billion

The bankruptcy followed defaults on interest and principal payments, SEC investigations, and the company’s inability to file an annual financial report. On April 4, 2022, the Wall Street Journal reported that GWG previously sought rescue financing that would have enabled it to restructure its balance sheet out of court, but recently shifted to pursuing a loan to finance a chapter 11 proceeding. 

NASDAQ Delisted GWG Holdings on April 29, 2022

On April 26, 2022, GWG Holdings filed a Form 8-K stating that the Company had received notice from NASDAQ about the delisting of its stock. The Listing Qualifications Department of the Nasdaq Stock Market notified GWG that, as a result of the filing of the Chapter 11 Cases, NASDAQ planned to suspend trading of the Company’s common stock at the open of business on Friday, April 29, 2022. In support of its decision, NASDAQ cited, among other rules, Listings 5110(b). This Rule relates to bankruptcy and liquidation. The Rule states, in relevant part, that Nasdaq may use its discretionary authority to suspend or terminate the listing of a Company that has filed for protection under any provision of the federal bankruptcy laws.

Do You Need to File a Complaint Against GWG Holdings?

For your free and confidential case evaluation, please call our office at (888) 997-9956 to start the process of filing a complaint againt GWG Holdings for L Bond investment losses. If you wish to wpeak directly to an attorney, you can email Lawrence Klayman at lawrence@klaymantoskes.com.

Which Brokerage Firms Sold GWG Holdings L Bonds?

Several brokerage firms have reportedly sold GWG L bonds, including:

• American Trust Investment Services
• Arete Wealth Management,
• Ausdal Financial Partners,
• B.B. Graham & Company,
• Cabot Lodge Securities,
• Capital Investment Group,
• Centaurus Financial,
• Center Street Securities,
• Coastal Equities,
• Emerson Equity,
• IFP Securities,
• Intervest International Equities Corporation,
• Lion Street Financial,
• Moloney Securities,
• Newbridge Securities,
• NI Advisors,
• Portsmouth Financial Services,
• Western International Securities, 
• Westpark Capital, and many others.

What is the Size of the GWG Holdings Bankruptcy?

Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor’s business affairs, debts, and assets. GWG Holdings has identified over 25,000 individual bond holders, exclusive of the thousands of holders of the debtor’s publicly held common equity and preferred equity. Approximately 10,000 of the Bondholders have a direct subscription with GWGH (“Direct Holders”). Approximately 17,400 of the Bondholders are subscribed through various securities intermediaries, such as The Depository Trust Company (“Indirect Holders”). The average individual Bondholder owns  approximately $45,000 worth of Bonds.

GWG Holdings Lawsuit – Contact GWG L Bonds Lawyers Today

Suffer investment losses from GWG Holdings L bonds? Call us at +1 (888) 997-9956 for a free consultation to discuss your GWG Holdings L Bonds case.

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SEC Investigation into GWG Holdings and Broker-Dealers

In October 2020, the Enforcement Division of the SEC served a subpoena on GWGH in connection with an investigation regarding certain accounting matters and GWGH’s issuance of Bonds. After GWG indicated its intent to restart bond sales, which is believed to be at or around late 2021, the SEC issued subpoenas and document requests to individual Broker Firms that were selling or were considering selling GWGH Bonds. The document requests and subpoenas are allegedly related to bond sales practices. According to GWG, Public L Bonds have historically been sold by a seller network most recently comprised of approximately 145 Broker Firms.

GWG Holdings Failed to Timely File its Annual Report with the SEC

On April 1, 2022, GWG Holdings filed a Notification of Late Filing stating that the company is unable to file its Annual Report within the prescribed time period because GWG requires additional time to complete its financial statements and related disclosures.

GWG’s prior independent registered public accounting firm had previously notified the firm that it will not stand for reappointment as GWG’s independent registered public accounting firm. The Company stated in its April 1, 2022 filing that it had not yet engaged an auditor to audit its financial statements for the year ended December 31, 2021, but was in the process of reviewing potential candidates.

Recover GWG Holdings L Bonds Investment Losses

KlaymanToskes is a leading national securities law firm practicing exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered more than $245 million for investors in FINRA arbitrations and over $350 million in other securities litigation matters for its clients. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

GWG Holdings Misses Another Regulatory Filing Deadline

On May 17, 2022, GWG Holdings, Inc. filed a Form NT 10-Q stating that it is unable to file its Quarterly Report for the period ended March 31, 2022 within the prescribed time period. GWG stated that it would be untimely with the filing because the Company requires additional time to complete its financial statements and related disclosures to be included in the Form 10-Q. This is not the first time GWG has been late filing required reports with the SEC. For instance, on April 1, 2022, the Company filed with the Securities and Exchange Commission a Form 12b-25, Notification of Late Filing, with regard to its Annual Report on Form 10-K for the fiscal year ended December 31, 2021 because the Company required additional time to complete its financial statements and related disclosures. Further, GWG stated that it has not finalized its financial statements for the Form 10-K, and the Company is not in a position to file its Form 10-Q until after the financial statements for the Form 10-K have been finalized. National investment fraud lawyers KlaymanToskes is currently representing GWG L Bondholders in light of the Company’s ongoing Chapter 11 bankruptcy and SEC investigation. For more information about our GWG L Bond investigation, contact us today.

Should Investors Join the GWG Holdings Class Action?

Class action lawsuits are designed to recover damages for a group or “class” of investors who sustained investment losses due to the same cause of action and security at issue. Though a class action has been filed against GWG, the process could take years to resolve. Further, empirical evidence shows that investors may achieve an overall higher rate of recovery by filing an individual FINRA arbitration claim. By filing a FINRA claim, GWG L Bondholders will have their individual, personalized case facts considered by the Arbitration Panel, and they are factored into the value of the case. Comparatively, these individual case facts are not considered in a class action.

Contact GWG Holdings L Bonds Lawyers

KlaymanToskes

Lawrence L. Klayman, Esq.

(888) 997-9956

lawrence@klaymantoskes.com

www.klaymantoskes.com