Federman & Sherwood Announces Investigation Into GWG Holdings, Inc. (NASDAQ: GWGH) And Financial Advisors who Sold Bonds for GWG Holdings, Inc.

Rhea-AI Summary

Federman & Sherwood is investigating potential securities fraud claims for investors of GWG Holdings (NASDAQ: GWGH). The claims relate to GWG Holdings' alleged violations of federal securities laws. The company recently disclosed that it missed interest payments of approximately $10.35 million and principal payments of around $3.25 million on its L Bonds. Additionally, they have suspended L Bonds sales since January 10, 2022. Following these events, GWGH shares have dropped over 60% since that date.

Positive

• None.

Negative

• Missed interest payments of approximately $10.35 million and principal payments of approximately $3.25 million on L Bonds.
• Suspended L Bonds sales effective January 10, 2022.
• Stock down more than 60% since January 10, 2022.
• Under SEC investigation since 2020.
• Allegations that funds from investors were used to pay older investors.

 

OKLAHOMA CITY--(BUSINESS WIRE)-- Federman & Sherwood announces that it is investigating potential securities fraud claims on behalf of investors of GWG Holdings, Inc. (“GWG Holdings”) (NASDAQ: GWGH) and products, including bonds, sold by GWG. The securities claims relate to GWG Holdings' alleged violations of federal securities laws.

In its recent Form 8-K filing with the SEC, GWG Holdings disclosed that it “. . . did not make the January 15, 2022 interest payments of approximately $10.35 million and principal payments of approximately $3.25 million with respect to its L Bonds.” GWG Holdings also stated it has “elected to voluntarily suspend its L Bonds sales effective as of January 10, 2022.”

After GWG Holdings’ failure to pay its interest payments and its suspension of the L Bonds, The Wall Street Journal reported that GWG Holdings has been under SEC investigation since 2020. The Journal also reported that the majority of afflicted investors were “retail investors” that “were shocked to learn that their money was used to pay old investors while the company has been under SEC investigation.”

Since January 10, 2022, GWGH is down more than 60%.

INVESTORS OF GWG HOLDINGS OR WHO BOUGHT BONDS SOLD BY FINANCIAL ADVISORS FOR GWG ARE ENCOURAGED TO CONTACT D. COLBY ADDISON, ESQ., AT 405.235.1560 OR EMAIL D. COLBY ADDISON TO DISCUSS THE GWG HOLDINGS INVESTIGATION OR POTENTIAL LEGAL CLAIMS.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220128005504/en/

William B. Federman

D. Colby Addison

FEDERMAN & SHERWOOD

Email to: wbf@federmanlaw.com; dca@federmanlaw.com

Or visit the firm’s website at www.federmanlaw.com

Source: Federman & Sherwood

FAQ

What are the recent developments regarding GWG Holdings (GWGH)?

Federman & Sherwood is investigating potential securities fraud claims for GWG Holdings due to alleged violations of federal securities laws.

How much did GWG Holdings miss in interest and principal payments?

GWG Holdings missed interest payments of approximately $10.35 million and principal payments of approximately $3.25 million.

When did GWG Holdings suspend its L Bonds sales?

GWG Holdings suspended its L Bonds sales effective January 10, 2022.

What has happened to GWG Holdings' stock price recently?

GWG Holdings' stock has decreased by more than 60% since January 10, 2022.

Why is GWG Holdings under SEC investigation?

GWG Holdings has been under SEC investigation since 2020 due to allegations related to its bond offerings.