The Kurta Law Firm is representing multiple investors who invested in GWG Holdings L Bonds (“GWG L Bonds”). The firm is seeking millions of dollars in damages on behalf of clients.
GWG Holdings’ January 2022 announcement stated the company had suspended interest payments to investors and was defaulting on $13 million in payments. The SEC is investigating GWG Holdings (NASDAQ: GWGH) and Kurta Law believes that a bankruptcy is imminent.
Brokerage firms misrepresented GWG bonds as a conservative investment that could provide investors with regular payments. Many investors were retired and unfortunately relied on GWG bonds for income. Our attorneys have concluded GWG Holdings operated like a Ponzi scheme and paid interest using money from the sale of new bonds. GWG stated in an 8-K filing that it “relies to a significant extent on L Bond sales to provide liquidity,” citing the lack of L Bond sales as the reason for their suspension of interest payments.
GWG Holdings recently received a letter from NASDAQ stating that the company is no longer in compliance with listing requirements. This follows GWGH’s failure to file an annual report with the SEC. The firm must submit a compliance plan to NASDAQ to remain listed on the stock exchange.
GWG Holdings is a Dallas-based financial services firm that offers alternative investment products.
What Can Investors Do to Recover Lost Funds?
If your stockbroker sold you investments in GWG L Bonds, you may be entitled to compensation through a FINRA arbitration claim. The Kurta Law Firm exclusively represents defrauded or misled investors. GWG L Bonds were clearly unsuitable for any investor.
Investors can contact Kurta Law for a free case evaluation: (877) 600-0098 or firstname.lastname@example.org.
About The Kurta Law Firm
The Kurta Law Firm has represented thousands of investors and has recovered over $200 million on their behalf. Our lawyers do not earn a fee unless you win your case—case evaluations with Kurta Law attorneys are free.
Founding partner Jonathan Kurta is a professor at New York Law and a member of Public Investors Arbitration Bar Association (PIABA). He has experience representing brokerage firms and understands their defense strategies. That experience can work to your benefit during FINRA arbitration.