Borrowings made with GWG l bonds have caused losses for the clients that Haselkorn & Thibaut represent. These high-yield bonds were issued by Dallas-based GWG Holdings, Inc. (NASDAQ: GWGH), a provider of alternative assets.
Our knowledgeable GWG Holdings L Bonds attorneys are assisting investors whose broker-dealers supplied them with these financial instruments. To contact the Haselkorn & Thibaut Law Firm right away, dial 1-888-614-9356 or send an email.
Legal Action Against GWG Holdings as a Class
Investor plaintiffs charged GWG Holdings board chairman Brad K. Heppner with creating the L Bond distribution platform in order to enrich himself in a class action securities lawsuit launched in early 2022. They assert that the corporation started investing in The Beneficient Company Group, LP in 2018 in place of life insurance plans.
The investors claim that they were not properly informed of the expenditures of their funds. Meanwhile, L Bond sales increased by 65% between 2018 and 2020. GWG Holdings started selling a $2 billion L Bond offering in 2020 that was promoted to its clients by a wide network of independent brokerage companies. These high-yield bonds cost $350 million, and the corporation sold them between August 2020 and April 2021.
Investors in the GWG Holdings L Bonds suffer millions of dollars in losses
Consider that you are an L Bond investor who wants to increase the likelihood that your investment will fully recoup its cost. It is crucial that you do not join a class action lawsuit in this scenario but instead submit your own claim for damages through FINRA arbitration.
L Bond holders are not only not receiving the income that was promised to them by GWG Holdings, but they are also owed millions of dollars. There is no way for them to redeem their bonds because the redemption payments have been discontinued.