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

Rhea-AI Summary

Federman & Sherwood has been contacted by investors of GWG Holdings regarding concerns over potential bond defaults. The firm is investigating securities claims against GWG Holdings for alleged federal securities law violations. Recently, GWG Holdings disclosed it failed to make approximately $10.35 million in interest payments and $3.25 million in principal payments due on January 15, 2022. Following these defaults, the company suspended L Bonds sales effective January 10, 2022, resulting in a more than 60% decline in stock value since that date.

Positive

• None.

Negative

• Failed to make January 15, 2022 interest payments of $10.35 million and principal payments of $3.25 million.
• Suspended L Bonds sales as of January 10, 2022.
• Under SEC investigation since 2020, raising concerns about compliance and financial health.
• Stock value declined over 60% since January 10, 2022.

OKLAHOMA CITY--(BUSINESS WIRE)-- Federman & Sherwood has been contacted by investors and bond holders of GWG Holdings, Inc. (“GWG Holdings”) (NASDAQ: GWGH) The investors are concerned about the potential default on the bonds and the impact on the investors. Federman & Sherwood is investigating securities claims relating 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 THOSE 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/20220204005505/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 concerns do investors have about GWG Holdings?

Investors are worried about potential bond defaults and the impact on their investments.

What did GWG Holdings disclose in its Form 8-K filing?

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

When did GWG Holdings suspend L Bonds sales?

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

How much has GWG Holdings stock declined since January 2022?

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

Is GWG Holdings under investigation?

Yes, GWG Holdings has been under SEC investigation since 2020.