NEW YORK–(BUSINESS WIRE)–Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors that a class action lawsuit has been filed against GWG Holdings, Inc. (“GWG” or the “Company”) (NASDAQ: GWGH) in the United States District Court for the Northern District of Texas on behalf of all persons and entities who purchased or otherwise acquired GWG L Bonds directly in GWG’s L Bond Offering pursuant to the June 3, 2020 Registration Statement. Investors have until April 19, 2022, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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GWG Holdings is a Dallas-based financial services firm that offers alternative investment products.
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 and bankruptcy appears 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. GWG appears to have 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 its suspension of interest payments.
GWG Holdings…
