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GWG INVESTOR UPDATE: Sale of Debtors’ Stock Approved

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Updated on: June 22, 2023

KlaymanToskes Pursues FINRA Arbitration for GWG Bondholders

NEW YORK, NEW YORK, UNITED STATES, June 22, 2023/EINPresswire.com/ — National investment loss lawyers KlaymanToskes announces GWG’s bankruptcy court approved a proposed order authorizing the sale of the Beneficient (BENF) stock held by the GWG L Bondholders’ trust during yesterday’s hearing (Case No. 22-90032).

While the bondholders’ trust currently holds 125.7 million shares eligible to be sold, it will reportedly own at least 142.8 million shares of GWG in several weeks, after it receives another 30 to 40 million in shares.

According to a recent article by Dr. Craig McCann and Regina Meng of SLCG Economic Consulting, “Since opening at $15 on the first day new BENF traded, the stock has followed a uniquely wretched pattern for nine straight days; each day BENF drops from the open to the close and then opens the next day lower than it closed the previous day on very low trading volumes.” As of today, the stock price is below $4.00.

Further, Dr. McCann states “Based on our research to date, we believe BENF will continue to drop on low trading volumes and any attempt by the bondholders’ trust to sell millions of GWG shares will drive the price close to $0.”

Ultimately, “bondholders will receive negligible amounts – perhaps $1 per share – for their GWG common stock” and at GWG’s current pace, “it would take 3.5 years to sell the bondholders’ 155 million to 165 million shares of GWG.”

KlaymanToskes encourages GWG L bondholders who suffered significant investment losses to contact the firm immediately at 888-997-9956 to discuss recovery options. Investors may pursue FINRA arbitration claims against the brokerage/investment advisory firms who sold these illiquid investments, in addition to any possible bankruptcy recovery.

KlaymanToskes is currently representing many GWG L Bondholders throughout the nation in FINRA arbitration claims against the brokerage firms and financial advisors that recommended the speculative L Bonds, including:

-Western International Securities,
-Moloney Securities,
-Centaurus Financial,
-Emerson Equity,
-Coastal Equities,
-Newbridge Securities,
-Capital Investment Group,
-IFP Securities,
-Ni Advisors,
-Center Street Securities, and
-B.B. Graham & Company.

Investors should immediately contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery.

About KlaymanToskes

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 over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

Lawrence Klayman
KlaymanToskes, P.A.
+1 888-997-9956
lklayman@klaymantoskes.com