If you have suffered losses in GWG L Bonds or other investments sold to you by your financial advisor, you may be able to pursue recovery of your losses through securities arbitration or litigation. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
GWG L Bond Investors May Be Able to Pursue Recovery of their Losses
On April 20, 2022, GWG Holdings Inc., an alternative asset manager known for selling life-insurance bonds to retail investors, filed for Chapter 11 bankruptcy after accounting issues prevented it from continuing to sell its products to retail investors. Approximately $1.6 billion of these L Bond investments were sold to retail investors through various brokerage firms nationwide.
GWG sold debt instruments to investors called L Bonds, which pooled money from bond investors to purchase life-insurance policies on the secondary market – with the goal of using payouts from the policies when people die to repay the investors. The company enters chapter 11 with more than $1.6 billion of L Bonds outstanding, mostly owned by individual investors who bought them after hearing a sales pitch from regional broker-dealers who sold the bonds on GWG’s behalf.
In 2020, GWG was forced to stop selling additional L Bonds because of accounting problems that delayed the filing of its 2020 annual report, as well as the resignation of its auditor. These developments led GWG to fail to make interest payments to L bondholders in January 2022.
Upon information and belief, many of the investors in the L Bonds are elderly or retired individuals, some of whom invested much of their life savings. In some instances, these investors may also have additional losses from other alternative investments sold to them by their financial advisors.
Call for a Free Consultation to Discuss Your Legal Options Regarding GWG L Bonds
Fortunately for investors, they may be able to pursue recovery of losses that they may have suffered (or may suffer) in the GWG L Bonds through securities arbitration or securities litigation against the brokerage firm that sold these investments to you. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your legal options. All consultations are strictly confidential, and all representation of GWG L Bond investors is on a contingency fee – meaning you owe no attorney’s or costs fees if there is not a recovery of investment losses.
Kons Law Firm represents investors nationwide in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and arbitration practice, please visit www.investmentlossattorney.com.