GWG Holdings L Bonds in Default as Company Files for Bankruptcy – Investors May Have Options for Financial Recovery

INVESTOR ALERT: GWG Holdings Has Filed Chapter 11 Bankruptcy As Shares Plummet; Investors May be Entitled to Damages

Sonn Law Group is Representing Investors Who Have Experienced Losses in GWG Holdings L Bonds

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GWG Holdings’ L Bonds are in default and the Wall Street Journal is now reporting that the company has filed for bankruptcy. This risky alternative investment was unsuitable for many individual investors.

Jump To: Answers for Concerned Investors ↓

Sonn Law Group has been retained by bondholders in order to attempt to recover investment losses in these L Bonds via a FINRA arbitration claim. We believe there were material misrepresentations and omissions made during the sales process. Our clients intend to seek full restitution for their losses.

If your financial advisor sold you on investments in GWG Holdings L Bonds, we want to hear from you. We work on a contingency so we don’t get paid unless we make a recovery for you.

Complete the short form below or call our office at 305-912-3000 for a free consultation with Sonn Law Group attorneys to discuss your options.

 

Investment Loss Recovery Intake: GWG L Bonds

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    GWG L Bonds: Answers for Concerned Investors

    GWG L BONDS lawyers

    Are GWG L Bonds in Default?

    Yes, GWG L Bonds are in default. On January 22, 2022 GWG entered an SEC filing that showed that it failed to make one interest payment of over $10M, and a principal payment of over $3M. On February 14th, GWG issued a letter to investors stating that payments would not be forthcoming. GWG L bonds officially went into default when they failed to make payments within one month of their SEC filing – February 22, 2022.
     

    What does news of GWG Holdings’ bankruptcy news mean for individual investors?

    Many investors purchased investments in GWG L Bonds after being advised to do so by their financial advisor or brokerage firm. These investors may be able recover monetary damages by filing a FINRA arbitration claim against their brokerage firm. Investment advisors and the brokerage firms that employ them have a duty to perform adequate due diligence on products like L Bonds, which are generally risky and often illiquid investments – and to accurately convey these investments to their clients. Failure to do so can result in financial liability for losses.
     

    What brokerage firms are known to have sold GWG L Bonds?

    GWG Holdings has publicly stated that L bonds were sold by a network of 145 brokerage firms. Sonn Law has been able to confirm that the following brokerage firms sold GWG L bonds to their clients:

     
    GWG Holdings states on their website that San Mateo-based Emerson Equity (CRD# 130032) – a broker/dealer that specializes in private placements – is the managing broker-dealer for GWG L Bonds. However, hundreds of additional brokerage firms sold these GWG’s products. If you were advised to purchase investments in GWG Holdings L Bonds, we want to hear from you.

     

    Are L Bonds Generally a Safe Investment?

    L Bonds are known as alternative investments; they are not publicly traded and thus are subjected to less regulation. Alternative investments tend to be illiquid meaning they usually cannot be easily sold or exchanged for cash without a significant loss in value. Alternative investments tend to be risky, and are not suitable for most investors.

    Related: What Investors Need to Know About FINRA Rule 2111: Suitability Rule
     

    Do GWG Bondholders Have Options for Recovering Their Losses?

    We believe so. We are representing investors who have evidence indicating that material misrepresentations and omissions were made during the sales of GWG L Bonds. If you were sold investments in GWG L Bonds, it’s in your best interest to speak with a securities lawyer about your options for recovery. Sonn Law offers free consultations and we work on a contingency basis, meaning you owe us nothing out-of-pocket, and we only get paid if we make a recovery for you.
     

    Do GWG Bondholders Need to Hire a Lawyer to Recover Losses?

    We believe your best option for recovering compensation is to be represented by an attorney who has experience with making FINRA arbitration claims specifically for cases involving unsuitable investments in risky alternative products like GWG L Bonds.


    Contact the GWG L Bond Loss Attorneys at Sonn Law Group

    Sonn Law Group represents investors who have been the victims of investment fraud and other financial misconduct. Managing Partner Jeff Sonn has over three decades of securities litigation experience and is a Director of the Public Investors Advocacy Bar Association and a member of the Securities Litigation Section of the American Bar Association.

    If you or someone you know invested in GWG stock or L Bonds, please contact Sonn Law Group for a confidential consultation at jsonn@sonnlaw.com or call toll free 833-912-3000. We typically handle cases on a contingency fee basis, meaning you don’t owe us anything unless we make a recovery for you.