Securities Arbitration Lawyer Blog
Iorio Altamirano LLP is investigating potential claims involving investments in L Bonds offered by GWG Holdings (Nasdaq: GWGH).
On July 26, 2021, GWG Holdings canceled its Combined 2020/2021 Annual Meeting of Stockholders originally convened and adjourned on May 28, 2021.
Prior to this cancellation, on July 7, 2021, Nasdaq warned GWG Holdings that it risked the potential delisting of its stock over the company’s failure to hold an annual meeting of shareholders and file its most recent Forms 10-K and 10-Q on time.
GWG Holdings also recently announced that it was temporarily pausing sales of L Bonds.
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.
About the L Bonds
GWG Holdings has been selling L Bonds since 2012. According to a firm Form 8-K, it began selling a $2 billion L Bond offering in the summer of 2020 to a growing network of advisors from 127 firms.
L Bonds are unrated life insurance bonds that finance the purchase of life insurance contracts bought in the secondary market. Brokers get a commission of 1 to 5% of the market price of the bond.
The L Bonds were offered by GWG Holdings with a maturity ranging from 2 to 7 years and paying an interest rate of 5.50% to 8.50%.
The L Bonds are speculative, high-risk, and illiquid bonds. They are secured by the assets of GWG Holdings and a pledge of all of the common stock by its largest stockholders.
Points of Concern
GWG Holdings has failed to submit regulatory filings on time, which raises serious questions about the company and its offerings in the high-yield L Bonds.
Investors should be aware of the following:
- On July 26, 2021, GWG Holdings announced the cancellation of its Combined 2020/2021 Annual Meeting of Stockholders, originally convened and adjourned on May 28, 2021. The company indicated that it had done so to permit time for GWGH to distribute proxy materials to stockholders. The company indicated that it would provide notice of a new meeting date.
- On July 7, 2021, GWG Holdings announced that it received a notice from The Nasdaq Stock Market LLC indicating that the company had not established compliance with Rule 5620(a), which requires that GWG hold an annual meeting of shareholders within 12 months of the company’s fiscal year-end, and Rule 5250(c)(1), because GWG had not yet filed its Form 10-K for the year ended December 31, 2020and Form 10-Q for the period ended March 31, 2021.
- On April 16, 2021, GWG Holdings announced that it was temporarily pausing sales of L Bonds.
- On November 19, 2020, the company filed its most recent Form 10-Q. In it, GWGH disclosed that it “may not be able [to] sell additional L Bonds on terms as favorable to the company as past transactions or in quantities sufficient to fund all of the company’s operating requirements. Additionally, the company may not be able to obtain additional borrowing under existing debt facilities or new borrowings with other third-party lenders.”
How to Recover Losses or Obtain a Free Consultation
If you have 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 reach the firm by phone 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.
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