**Update: April 20, 2022** GWG Holdings, Inc. has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas. As a result of the bankruptcy filing, all accrued principal and interest payment obligations owed to GWG L Bond investors have been halted as the case proceeds through bankruptcy court. Chapter 11 Bankruptcy cases can take anywhere from 17 months to five years for larger and more complex cases. GWG L Bond investors are encouraged to immediately contact law firm Iorio Altamirano LLP for a free and confidential consultation and to review their legal rights.
**Update: April 4, 2022** According to the Wall Street Journal, GWG Holdings, Inc. is preparing to file for Chapter 11 bankruptcy in the coming days.
Original Post:
GWG Holdings, Inc. Misses Deadline to File Its 2021 Annual Report with the SEC
On April 1, 2022, GWG Holdings, Inc. disclosed that it was unable to timely file its 2021 annual report with the United States Securities and Exchange Commission (“SEC”). GWG Holdings, Inc. has now failed to timely file annual reports with the SEC in three of the past four years. The latest missed deadline comes after the company defaulted on its financial obligations to GWG L Bond investors earlier this year.
The Notification of Late Filing filed by GWG Holdings, Inc. indicated that the company was unable to file its Annual Report on Form 10-K for the year ended December 31, 2021, because the company required additional time to complete its financial statements and related disclosures.
According to the notice, GWG Holdings, Inc. missed the deadline in part because Grant Thornton, LLP, the company’s prior independent auditor, resigned on December 31, 2021. The accounting firm that replaces Grant Thornton will be GWG Holdings, Inc.’s fourth different independent auditor since August 2019. GWG Holdings, Inc. has not yet engaged an auditor to audit its financial statements for the year ended December 31, 2021. The notice also indicated that the company is in the process of “reviewing potential candidates.”
For the past several months, GWG Holdings has been working with legal and financial advisors to evaluate its restructuring alternatives. According to the Wall Street Journal, GWG Holdings is also seeking rescue financing to avoid bankruptcy, but a Chapter 11 bankruptcy filing is on the table as a last resort.
Meanwhile, GWG L Bond investors remain worried about what is going to happen to their principal investments.
Many investors, including those represented by securities arbitration law firm Iorio Altamirano LLP, are filing securities arbitration claims against the selling broker-dealer in a bid to recover losses.
Investors who purchased the L Bonds offered by GWG Holdings are encouraged to contact Iorio Altamirano LLP for a free and confidential consultation. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.
For the latest on Iorio Altamirano LLP’s investigation of GWG L Bonds, visit our firm’s investigation page: Iorio Altamirano LLP’s Investigation of GWG L Bonds
How to Recover Losses or Obtain a Free Consultation
In light of this most recent development, L bond investors are encouraged to contact Iorio Altamirano LLP, a leading securities arbitration law firm, to review their legal rights. Iorio Altamirano LLP is representing numerous GWG L bond investors in filing securities arbitration claims against firms such as Emerson Equity LLC and Centaurus Financial, Inc.for sales practice violations connected to the solicitation and sale of GWG L Bonds.
The L Bonds are speculative, high-risk, and illiquid private placement offerings. They were likely not suitable for investors with liquidity needs, low to medium risk tolerances, or senior or elderly investors.
If you or a loved one has invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, you may call the firm toll-free at (855) 430-4010.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.