GWG Bond Investors Sue To Recover L Bond Losses

Investment fraud lawyers are encouraging investors in GWG L Bond to come forward and make an effort at claiming their losses through the FINRA (Financial Industry Regulatory Authority) arbitration process. They are already representing many retiring or near-retirement investors mounting claims for recovery.

In a bid to encourage more people to come forward, Haselkorn & Thibaut has offered free consultations for evaluating the merit of their potential claims as well as for guiding them on their rights under the law. They can be reached at 1-888-902-6872.

Investors working with Iorio might be able to make recoveries without paying any fixed cost to the legal firm, purely on the basis of a contingent fee arrangement; pay only if you recover.

Experienced investor attorneys help investors in recovering their financial losses that arise as a result of fraud or misconduct of broker-dealers and financial advisors, by initiating and pursuing FINRA arbitration claims. It has also recently conducted a comprehensive investigation into GWG Holdings and published its initial findings.

GWG Holdings, Inc. via ‘Bankruptcy Petition # 22-90032, 4:2022bk90032,’ having, in the United States Bankruptcy Court for the Southern District of Texas, filed for bankruptcy protection under Chapter 11 on the 20th of April, 2022. This has been a devastating development for investors of the L Bond of GWG and appears to have put a question mark over their ability to even recover the principal amount invested.

Prospects for GWG Investors

Bankruptcy proceedings under Chapter 11 can be long and arduous for investors and can take up to 5 years to be resolved if the case is complex. Even after a resolution has been reached, it can be many more months before the money starts flowing to investors, according to the priority that has been established.
Assessed in September 2021, the total liabilities of GWG amounted to over $2 billion, a major part of which, $1.55 billion, was contributed by L Bonds.
Additionally, as articulated in the prospectus of GWG L Bond, other debt obligations will take precedence over L Bonds. It seems quite clear that L Bond investors will not see anywhere near their full invested principal being returned.

Bankruptcy proceedings notwithstanding, investors are free to initiate individual proceedings through the FINRA arbitration process against broker-dealers that sold these securities to them, without impacting their recovery chances. The case could be based on being sold illiquid, high-risk, and speculative securities. Investors also have the option of filing a class-action lawsuit against the company.

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