Lawsuit for Investors in GWG Holdings, Inc. (NASDAQ: GWGH) L bonds filed

An investor, who purchased L bonds of GWG Holdings, Inc. (NASDAQ: GWGH), filed a lawsuit over alleged violations of Federal Securities Laws by GWG Holdings, Inc.

Investors who purchased GWG Holdings, Inc. (NASDAQ: GWGH) L bonds directly in GWGH's L bond offering pursuant to a June 3, 2020, registration statement. Commenced on February 18, 2022, you have certain options and for certain investors are short and strict deadlines running. Deadline: April 19, 2022. GWG Holdings, Inc. (NASDAQ: GWGH) L bonds investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Dallas, TX based GWG Holdings, Inc., a financial services company, provides various liquidity solutions and services for the owners of illiquid alternative assets in North America, Asia, Western Europe, Latin and South America, and internationally. GWG Holdings, Inc. reported that its annual Total Revenue rose from $92.27 million in 2019 to $124.37 million in 2020, and that its Net Income of $108.10 million in 2019 turned to a Net Loss of $153.91 million in 2020.

On or about March 30, 2020, GWG Holdings, Inc filed with the Securities and Exchange Commission a registration statement for an L bond offering, which became effective on June 3, 2020.
In August 2020, GWG Holdings, Inc began offering and selling L bonds pursuant to the June 2020 registration statement. GWG Holdings, Inc sold over $350 million of L bonds between August 2020 and April 2021 in connection with the June 2020 registration statement.

By April 2021, GWG Holdings, Inc was forced to discontinue the L bond offering as it was unable to timely file its 2020 annual report and soon faced liquidity problems.
In November 2021, GWG Holdings, Inc disclosed that it had received an SEC subpoena for documents and information relating to the offering and its accounting practices, among other areas of inquiry. GWG Holdings, Inc further disclosed that the existence of the investigation could have a material adverse effect on "the value of [GWGH's] securities."

On January 18, 2022, GWG Holdings, Inc disclosed that its Annual Report will likely be filed "later than the March 31, 2022 due date" because of "the recently disclosed decision of its independent registered public accounting firm to decline to stand for reappointment." GWG Holdings, Inc further disclosed that it "did not make the January 15, 2022 interest payment of approximately $10.35 million and principal payments of approximately $3.25 million with respect to its L Bonds" product and that it elected to "voluntarily suspend its L Bonds sales effective as of January 10, 2022."

Then, on January 27, 2022, The Wall Street Journal reported that GWG Holdings, Inc received a subpoena in 2020 from the Securities and Exchange Commission's division of enforcement ordering the Company to produce documents. The paper also reported that an attorney who represents multiple L Bonds investors said that most of his clients are retail investors who bought the bonds after hearing a sales pitch that the products were safe and would offer a comfortable income stream for their retirement, but that "they were shocked to learn that their money was used to pay old investors while the company has been under SEC investigation.

In February 2022, GWG Holdings, Inc announced that it was unable to continue making payments on L bonds and that the bonds lacked value on account of GWG Holdings, Inc's inability to service them.

According to the complaint the plaintiff alleges that the defendants made material misrepresentations and omissions in the June 2020 registration statement concerning GWGH's use of the net proceeds from the L bonds offering. Plaintiffs allege that, contrary to representations in the registration statement, L bond proceeds were neither used to increase the value of GWGH's assets (alternative or otherwise), nor to provide an expanded set of products or services for investors, nor to increase working capital or liquidity, nor to satisfy any regulatory requirements.

Those who purchased GWG Holdings, Inc. (NASDAQ: GWGH) L bonds have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.