GWG Holdings Loss Recovery Lawyers
The recent GWG Holdings bankruptcy filing has left many investors wondering what their recovery options will be. Investors may be able to receive some of their principal back through the company’s Chapter 11 bankruptcy proceedings, but that will take time and is not a guarantee of recovery. Ultimately, GWG’s failure is a tragic reminder of the risks of investing in high-yield investments.
For years, investors were sold GWG L Bonds by broker-dealers and financial advisors who knew or should have known that the unrated life insurance bonds were risky. Those risks included lack of credit rating, lack of insurance, and poor performance. GWG Holdings loss recovery lawyers bankruptcy filing should serve as a warning to investors that these high-risk investments should only be made by sophisticated institutional investors who have a very high tolerance for risk.
In the wake of GWG’s bankruptcy filing, it has been reported that it will not resume L Bond sales until it can complete its annual financial statement for 2021. That is likely to be months from now, meaning that the company will not have the funds necessary to make interest payments to L Bond owners going forward. In fact, the company’s cash on hand is far short of what it needs to meet its current obligations.
As the situation unfolds, GWG is facing a host of other issues that make it unlikely that investors will be able to recover much of their investment principal. The company’s corporate structure is convoluted and confusing, and most of its assets are held by affiliates that have not filed for bankruptcy. In addition, its accountants resigned in December of 2021, and the company has disclosed in filings with the Securities and Exchange Commission that it is currently under investigation by the SEC.
Silver Law Group represents investors who purchased GWG L Bonds through regional brokerage firms. In these cases, our attorneys work to file FINRA arbitration claims against those brokers and their firms that pushed these high-risk investments to their customers. Unlike filing a lawsuit against GWG, arbitrations typically proceed much faster and often result in awards in our clients’ favor. Moreover, a case against the broker-dealer will not interfere with any claims you may have against GWG.
If you are an investor who purchased GWG’s L Bonds through a broker-dealer, then you should speak with a securities attorney about your options for recovery. Our attorneys at Silver Law Group have handled hundreds of FINRA, NYSE, and NASD arbitrations and are well-versed in the laws that apply to these cases. To learn more about your recovery options, contact us today. We offer free, no-obligation consultations to all investors. Our firm handles cases nationwide. Please do not delay in seeking legal representation as statutes of limitations vary by state. We look forward to hearing from you.