Dallas-Based Alternative Asset Firm Expected To Seek Bankruptcy Protection Very Soon
According to sources, GWG Holdings, Inc. (NASDAQ: GWGH) is preparing for Chapter 11 bankruptcy. The reports come after the Texas-based alternative asset firm notified the Securities and Exchange Commission (SEC) in an April 1, 2022 filing that it could not submit its 2021 yearly report and other financial statements. The firm has yet to retain an auditor since Grant Thornton stepped down from that role in December 2021.
Not having an auditor for this long can signify that a company is planning to seek bankruptcy protection. However, according to InvestmentNews, a GWG spokesperson refused to comment about such preparations when questioned.
GWG Holdings sold $1.6B in life settlement-backed bonds through many independent broker-dealers. In February 2022, it defaulted on $13.6M in principal payments plus interest that it owed investors of its L Bond series.
Visit our GWG Holdings, Inc. page for more information about the company and recent events.
Our securities lawyers represent investors who suffered losses because their brokerage firm unsuitably recommended and sold them these high-yield bonds. Please contact us today at Shepherd Smith Edwards and Kantas so that we can help you determine whether you have grounds for a claim to pursue damages.
GWG Holdings Shares Plunge
After The Wall Street Journal reported that GWG Holdings was getting ready to file for bankruptcy, trading in GWG shares on April 4, 2022, had dropped over 16% to $4.48/share. (Trading also was suspended and resumed several times.) On April 11, 2022, GWG shares traded at $1.73/share.
On April 6, 2022, The Listing Qualifications Department of the Nasdaq Stock Market let GWG Holdings know that it was no longer compliant with NASDAQ Listing Rule 5250(c)(1). This is because the company has yet to turn in its Form 10-K for the fiscal year ending on December 31, 2021.
Chapter 11 Bankruptcy Would Be Bad News for GWG L Bond Investors
L Bond investors are likely to suffer huge losses in the wake of a GWG Holdings bankruptcy filing. Many are retirees, conservative investors, and other retail investors whose financial advisors should never have marketed and sold them these high-yield bonds. Many investors placed their life savings in these bonds.
Emerson Equity is the managing broker-dealer for GWG issuers. The firm partnered with many other brokerage firms and their registered representatives to sell L bonds to customers. The firms earned up to 8% in commissions in the process.
Representing GWG Holdings L Bond Investors
SSEK Law Firm represents L Bond investors in Financial Industry Regulatory Authority (FINRA) arbitration against their broker-dealers, including Ni Advisors, Center Street Securities, and others. Claimants are alleging unsuitability, misrepresentations and omissions, negligence, failure to supervise, and other violations.
It is important that you hire your own seasoned securities attorneys and submit an individual claim for financial recovery. SSEK Law Firm has gone up against the biggest broker-dealers in the country to pursue damages for our clients, and we have recovered many millions of dollars.
Call our skilled GWG Holdings L Bond Lawyers at (800) 259-9010 today to request your free, no-obligation case consultation.