If you lost money on a GWG L Bond, you may have a legal right to recover those losses. Under federal law, a broker is required to make appropriate recommendations only if they are backed by reasoned and unbiased advice. Brokers who recommend products that are not suitable for your portfolio may be charged with securities mismanagement or broker-dealer misconduct. You may be eligible to recover these losses if you can show that the broker recommended the product without adequate and rational reasons.
The financial services company GWG Holdings, Inc., filed for Chapter 11 bankruptcy on April 20, 2022, citing accounting problems and a resignation of its auditor. It failed to meet its obligations and investors suffered significant losses. The company had promised investors a high return, but in reality, GWG was unable to meet those obligations. It had been years since investors received a check from GWG Holdings, Inc., and now it is struggling to repay investors.
In January 2020, GWG stopped selling GWG L Bonds. The company was experiencing accounting problems and delayed filing its annual report. Its auditor quit and GWG failed to make interest payments to L Bond holders in January 2022. Many investors were elderly and invested life savings. They lost money in alternative investments as a result of the company's failure to meet its obligations. If you purchased L Bonds from GWG, it is important to consult an attorney as soon as possible.
If you lost money on a GWG L Bond, you may have a legal right to pursue a recovery. The securities firm that sold you the investment may be responsible for your losses if you were not suitably advised. Thousands of investors have already lost money after investing in GWG L bonds. For the first time in history, investors have the legal right to file a claim. The best way to start filing a claim is by contacting a lawyer who specializes in securities law.
If your L Bond was purchased in the first half of 2012, your investment will likely be worth more than double. GWG has already missed several payments due to its financial woes. The company is currently exploring options to raise additional capital and restrict L Bonds. There is also a possibility that GWG will file for bankruptcy. In these cases, your losses may be more than enough to make a difference in your financial future.
Until further notice, GWG has suspended the sale of L Bonds. Because GWG relies on L Bonds as a significant part of its annual financials, the company is unlikely to resume the L Bond sales until 2021. Due to delays in filing its annual reports with the SEC, GWG has not submitted its Annual Report on Form 10-K by the March 31, 2022 deadline. As a result, investors who invested in these bonds should contact a GWG attorney immediately to begin the process of recovering their L Bond losses.
In the meantime, investors may want to seek a court order to recover their losses. A lawsuit filed by Silver Law Group against GWG Holdings and its principals aims to recover the money that investors have lost on GWG L Bonds. The lawsuit alleges violations of federal securities laws. If successful, the lawsuit will recover substantial losses for the investors. This process could take three to four weeks. But there is still hope for investors.
