NEW YORK, June 3, 2022 (GLOBE NEWSWIRE) — KlaymanToskes, a national investment fraud attorney, continues to investigate and pursue FINRA arbitration claims on behalf of GWG Holdings L Bond investors in light of bankruptcy GWG Chapter 11 filing and recent notification to the SEC of its failure to timely file its Quarterly Report.
According to securities attorney Lawrence L. Klayman, Esq., “The GWG L Bond matter underscores the need for a brokerage firm to properly disclose the risks associated with the products they sell to their retail clients. In our GWG cases, the brokerage firms and their financial advisors did not fully understand the products they were selling and, as a result, did not disclose necessary information to their clients about the illiquid and speculative nature of the GWG L Bonds. A company’s failure to disclose material risks to investors on the GWG Holdings L Bonds results in liability and is the basis for a FINRA arbitration claim.”
In April 2022, GWG Holdings, Inc. (OTHER OTC: GWGHQ) filed for Chapter 11 bankruptcy after the Company defaulted on $3.5 million in principal payments and $10.35 million in interest payments to investors on its L Bonds. Additionally, on May 17, 2022, GWG notified the SEC, once again, of its inability to timely file its required Quarterly Report with the SEC because the Company requires additional time to complete its financial statements and disclosures.
The sole purpose of this release is to investigate on behalf of our clients who purchased GWG L Bonds through brokerage firms. GWG L Bond investors who purchased their investments through brokerage firms with losses greater than $75,000, and those with information regarding the handling of their accounts, are encouraged to contact Lawrence L. Klayman, Esq. at 1-888-997-9956.
KlaymanToskes is a leading national securities law firm that practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors worldwide in large and complex securities matters. The firm has recovered more than $230 million in FINRA arbitrations and more than $350 million in other securities litigation for its clients. KlaymanToskes has offices in California, Florida, New York and Puerto Rico.
Lawrence L. Klayman, Esq.