Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors that a class action lawsuit has been filed against GWG Holdings, Inc. (“GWG” or the “Company”) (NASDAQ: GWGH) in the United States District Court for the Northern District of Texas on behalf of all persons and entities who purchased or otherwise acquired GWG L Bonds directly in GWG’s L Bond Offering pursuant to the June 3, 2020 Registration Statement. Investors have until April 19, 2022, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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GWG Holdings is a Dallas-based financial services firm that offers alternative investment products.
GWG Holdings’ January 2022 announcement stated the company had suspended interest payments to investors and was defaulting on $13 million in payments. The SEC is investigating GWG Holdings and bankruptcy appears imminent.
Brokerage firms misrepresented GWG bonds as a conservative investment that could provide investors with regular payments. Many investors were retired and unfortunately relied on GWG bonds for income. GWG appears to have operated like a Ponzi scheme and paid interest using money from the sale of new bonds. GWG stated in an 8-K filing that it ‘relies to a significant extent on L Bond sales to provide liquidity,” citing the lack of L Bond sales as the reason for its suspension of interest payments.
GWG Holdings recently received a letter from NASDAQ stating that the company is no longer in compliance with listing requirements. This follows GWG’s failure to file an annual report with the SEC. the firm must submit a compliance plan to NASDAQ to remain listed on the stock exchange.
If you purchased or otherwise acquired GWG L bonds and suffered a loss, are a long-term stockholder or bondholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
