Latest News on GWG Holdings (L Bonds) Investment Losses
National investment fraud lawyers KlaymanToskes is currently representing GWG L bond holders as GWG Holdings, Inc. navigates its Chapter 11 bankruptcy. Investors with losses in excess of $75,000 in GWG’s L Bonds resulting from recommendations by full-service brokerage firms are encouraged to contact our firm for a free consultation.
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Our firm practices exclusively in the field of securities arbitration and litigation on behalf of individual, high-net-worth, ultra-high-net-worth, and institutional investors throughout the world. We represent investors who have suffered investment losses at the hands of their trusted financial advisors and financial institutions.
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What is GWG Holdings?
GWG Holdings, through its subsidiary, GWG Life, LLC, owns and manages a portfolio of life insurance policies. GWG created products known as L Bonds, which pooled money from bond investors to purchase life-insurance policies on the secondary market, and then used payouts from the policies when people died to repay the investors. According to its Chapter 11 bankruptcy petition filed in April 2022, GWG describes 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 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. On its bankruptcy petition, GWG Holdings stated that there are between 25,001 and 50,000 creditors, and its liabilities are between $1,000,000,001 and $10,000,000,000. GWG had listed its total assets as $3,490,196,000 and total debts as $2,063,192,000.
GWG’s bankruptcy follows recent news reporting and company disclosures about the firm’s financial troubles. For instance, 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. GWG Holdings bankruptcy follows the company’s recent defaults on interest and principal payments, its disclosure about its inability to file an Annual Report on Form 10-K within the prescribed time-period, and an ongoing SEC investigation.
NASDAQ Delists 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 plans 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.
Investment Losses? We Can Help You Recover GWG L Bond Losses
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.
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 email@example.com.
Which Brokerage Firms Sold GWG Holdings L Bonds?
Several brokerage firms have reportedly sold GWG L bonds, including:
- Western International Securities
- Newbridge Securities
- Emerson Equity
- American Trust Investment Services
- Moloney Securities
- IFP Securities
- Center Street Securities
- B.B. Graham & Company
- Cabot Lodge Securities
- Capital Investment Group
- Centaurus Financial
- Coastal Equities
- Ni Advisors
- Landolt Securities
- Lion Street Financial (Stiba Wealth Management)
- SW Financial, 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.
The SEC Investigation of GWG Holdings and its Network of Brokers
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.
What is the Status of the GWG Holdings Bankruptcy?
It remains unclear if GWG L Bondholders will recover any money from GWG’s Chapter 11 bankruptcy. Complex bankruptcy proceedings can last several years, and it is unknown how long the GWG Bankruptcy will last. KlaymanToskes encourages GWG L Bondholders to act quickly and explore their legal options in light of the unpredictable timing of the bankruptcy. In the interim, GWG L Bond investors are unlikely to receive interest and principal payments during the Company’s bankruptcy. Typically, bondholders
do not receive any payments during a corporate bankruptcy.
The claims filing deadline in the GWG Bankruptcy was July 29, 2022. In early September 2022, GWG issued notices to direct and indirect Bondholders asking them to review and confirm GWG’s records of their bonds. The deadline to submit corrections is November 4, 2022. However, GWG L Bond investors should act quickly and explore all of their legal options to recover their investment losses, including filing a FINRA arbitration claim against their full-service brokerage firm that sold them the GWG L Bonds. For more information, contact us today.
What is the Status of the SEC Investigation on GWG Holdings?
SEC investigations can span over several years, which leaves GWG L Bond investors waiting for an answer to the status of their investments. For instance, the SEC began investigating GWG back in October 2020 regarding certain accounting matters and GWG’s issuance of L Bonds. Within the past year, the SEC also issued subpoenas and document requests to individual Broker Firms that were selling or were considering selling GWGH Bonds. We do not expect the SEC investigation to conclude anytime soon, which is
another reason why GWG L Bondholders should explore their legal options quickly to recover their GWG L Bond losses.
I Hear There is a GWG Holdings Class Action. What Should I Do?
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
Lawrence L. Klayman, Esq.
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