NEW YORK, June 03, 2022 (GLOBE NEWSWIRE) — National investment fraud attorney KlaymanToskes continues to investigate and prosecute FINRA arbitration claims on behalf of GWG Holdings L Bond investors in light of GWG’s ongoing Chapter 11 bankruptcy and recent notification to the SEC of its failure to file its quarterly report on time.
According to securities attorney Lawrence L. Klayman, Esq., “The GWG L Bond case underscores the need for a brokerage firm to properly disclose the risks associated with the products it sells to its retail clients. In In our cases GWG, the brokerage firms and their financial advisors did not fully understand the products they were selling and therefore did not disclose necessary information to their clients about the illiquid and speculative nature of GWG L bonds. A company’s failure to disclose to investors the material risks associated with GWG Holdings L Bonds engages its liability and forms the basis of a FINRA arbitration claim.
In April 2022, GWG Holdings, Inc. (OTHER OTC: GWGHQ) filed for Chapter 11 bankruptcy after the company defaulted on its payment obligations of $3.5 million in principal and $10.35 million dollars in interest to investors on its L bonds. In addition, on May 17, 2022, GWG notified the SEC – again – of its failure to timely file its required quarterly report with the SEC because the company needs more time to complete its financial statements and information.
The sole purpose of this release is to investigate on behalf of our clients who have 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 who have information relating to 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 securities arbitration and litigation on behalf of retail and institutional investors worldwide in major securities matters and complex. The firm has recovered over $230 million in FINRA arbitrations and over $350 million in other securities litigation for its clients. KlaymanToskes has offices in California, Florida, New York and Puerto Rico.
Lawrence L. Klayman, Esq.