National investment fraud lawyers KlaymanToskes is currently representing GWG L Bondholders in FINRA arbitration claims against their brokerage firms amid GWG’s ongoing bankruptcy.
On May 17, 2022, GWG notified the SEC that it would be unable to timely file its Quarterly Report. According to EDGAR, GWG filed a Form NT 10-Q, which is a document that details a registrant’s information and explanation of the reason for why their Form 10-Q is delayed. A Form NT 10-Q is required to be filed within 45 days following the end of each company’s first three fiscal quarters.
In its Form NT 10-Q, GWG states that it is unable to file its Quarterly Report within the prescribed time period because GWG requires additional time to complete its financial statements and related disclosures. GWG’s notification to the SEC coincides with the Company’s ongoing Chapter 11 bankruptcy proceeding that is occurring in Texas Federal Court.
In January 2022, GWG Holdings, Inc. missed $10.35 million of interest payments and $3.25 million of principal payments to its L Bonds investors. The Company then defaulted on the bonds the following month in March 2022. Between the default, the Company’s delisting from NASDAQ in April 2022, and the Company’s ongoing bankruptcy and SEC investigation, the value of the illiquid bonds have most likely declined significantly, and it is KlaymanToskes’s opinion that the L Bonds may not be worth anything.
Many GWG L Bond investors purchased their investments through brokerage firms using retirement funds at the recommendation from their financial advisor. Believing the GWG L Bonds to be safe, low-risk investments, investors are now scrambling to adjust to their new financial reality as the Company navigates Chapter 11 bankruptcy and a SEC investigation. GWG L Bondholders should attempt to recover investment losses through filing claims against their brokerage firms through FINRA. Further, KlaymanToskes encourages investors to file a claim in the GWG Bankruptcy as well as participate in the ongoing class action.
KlaymanToskes is a leading national securities law firm which practices 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 $230 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico