The Wall Street Journal has recently reported that GWG Holdings has filed for bankruptcy as a result of the company’s default on its L Bonds. For many individual investors, this risky alternative investment proved inappropriate.
Bondholders have hired Haselkorn & Thibaut Law Group to represent them in their attempt to file a FINRA arbitration claim to recover investment losses in these L Bonds. We think that during the sales process, there were significant misrepresentations and omissions. Our clients plan to pursue total compensation for their losses.
To schedule a free consultation with attorneys from Haselkorn & Thibaut Law Group, please fill out the brief form below or contact us at 1-888-614-9356.
Are the GWG L Bonds Defaulting?
The GWG L Bonds have indeed defaulted. On January 22, 2022, GWG submitted an SEC filing revealing that the company had missed a principal payment of over $3 million and one interest payment of over $10 million. Investors were informed in a letter from GWG dated February 14th that payments would not be made. When the GWG L bonds didn’t start making payments on time after their SEC filing on February 22, 2022, they were declared to be in default.
For individual investors, what does the announcement of GWG Holdings’ bankruptcy mean?
Following recommendations from their financial advisor or brokerage business, several individuals bought investments in GWG L Bonds. By bringing a FINRA arbitration action against their brokerage business, these investors may be able to recoup financial losses. Investment products like L Bonds, which are typically hazardous and frequently illiquid investments, have a responsibility to undergo proper due diligence on the part of investment advisors and the brokerage firms that employ them, as well as to accurately disclose these investments to their clients. Losses may be owed in the event that this is not done.
