GWG Misses Payments for L BONDS, Setting Up a Potential Default

GWG Holdings, Inc. has issued a number of bonds over the years, including the L Series. According to GWG’s website, the L Series of bonds is now paused. The L bond was purported to finance the purchase of life insurance policies on the secondary market. The bonds were highly speculative, in exchange for a high yield.

In January 2022, GWG sent notice to the owners of the L series bonds that it had missed payments and that it needed additional time. However, if GWG waits too long, the bonds may be in default, which in turn could lead to substantial losses for investors.

These bonds carry significant risk and are not suitable or appropriate for many investors. If a financial advisor made a recommendation to invest in the L bonds, the advisor could be liable for investor losses if the recommendation was unsuitable. Moreover, if the advisor misrepresented any material risks of the bond investments, the advisor and/or his or her brokerage firm could also be liable.

Israels & Neuman focuses on representing investors who have been harmed by their stockbrokers, financial advisors, and securities brokerage firms. We have represented numerous investors who lost money investing in high yield or junk bonds.

If you invested in the GWG L Bonds, CONTACT ISRAELS & NEUMAN LAW for a free case evaluation.