GWG Files For Bankruptcy, Likely Wiping Out Significant Value for Investors

Have you invested money in stocks, preferred shares, or bonds issued by GWG Holdings? The law firm of Israels & Neuman may be able to help you recover investment losses.

On April 20, 2022, GWG Holdings filed for Chapter 11 bankruptcy in the Southern District of Texas. This follows a string of bad news for GWG Holdings. About two weeks ago, NASDAQ notified GWG Holdings of non-compliance of Listing Rule 520(c). The stock price of GWG Holdings has dropped from nearly $10 per share in January 2022 to about $2.22 per share as of April 20.

Moreover, in January 2022, the GWG L Series of bonds paused its interest payments. 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 they wait too long, the bonds may be in default, which in turn could lead to substantial losses for investors.

Investments in GWG, including common stock, preferred stock, and bonds, likely have lost significant value because of these investments. If a brokerage firm or financial advisor made a recommendation to invest in the GWG L bonds, the firm and/or advisor may be responsible for investor losses if the recommendation was not suitable.

Israels & Neuman is a securities arbitration and investment fraud law firm that represents investors who have been harmed by their stockbrokers, financial advisors, and securities brokerage firms. We represent clients in all 50 states and have represented numerous investors who lost money investing in high yield or junk bonds.

If you invested in the GWG L bonds, call Israels & Neuman Law at (720) 599-3505 or (206) 795-5798 for a free case evaluation.