Firm Advises L Bondholders to Consider Option #3 by Filing FINRA Arbitration Claims
NEW YORK, NEW YORK, UNITED STATES, May 27, 2022 /EINPresswire.com/ — National investment fraud lawyers KlaymanToskes encourages JRL Capital customers who were recommended to invest in GWG L Bonds to consider all their legal options in light of the firm’s May 24, 2022 GWG Investor Memorandum.
In their May 24, 2022 GWG Memorandum, JRL Capital Corporation advised its GWG L Bondholder clients about actions being taken on their behalf to try to get a maximum return in light of the ongoing uncertainty with GWG Holdings and its L Bonds. Specifically, the Memorandum states that there is “no magic door #3” for GWG L Bondholders aside from the Bank of Utah’s representation of stakeholders and inclusion in an ongoing class action lawsuit against GWG. However, KlaymanToskes contends that GWG L Bond investors have a third option to attempt recovery of their investment losses.
According to securities attorney Lawrence L. Klayman, Esq., “JRL Capital’s Memorandum mentions class action as a recovery option for investors, but it conveniently glosses over the fact GWG L Bondholders do, in fact, have another choice to address their investment losses. That choice is called FINRA arbitration. Though JRL Capital admits in its Annual Report that the firm can be involved in arbitrations arising in the ordinary course of its business, JRL Capital fails to advise their customers of all of their options.”
Brokerage firms like JRL Capital had several obligations in connection with its sales of GWG L Bonds to its customers. For instance, JRL Capital had a duty to ensure that GWG L Bonds were appropriate for particular customers before recommending them in what is known as a customer-specific suitability analysis. This is especially relevant as many L Bond investors were retired and elderly who were not looking to speculate with their life savings. Equally important, JRL Capital was required to provide a balanced disclosure of the risks, costs, and rewards associated with the GWG L Bonds. According to FINRA, this specific duty is particularly important when the sales are made to retail investors.
Former and current customers of JRL Capital who purchased GWG L Bonds through the firm, and those with information relating to the handling of their accounts, are encouraged to contact Lawrence L. Klayman, Esq. at 1-888-997-9956.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered more than $230 million 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.
Lawrence L. Klayman, Esq.