NEW YORK, Feb. 07, 2022 (GLOBE NEWSWIRE) -- National investment fraud lawyers KlaymanToskes ("KT") is investigating the sales practices of full-service brokerage firms relating to GWG Holdings, Inc. GWGH ("GWG") in light of the company's recent SEC filing announcing its missed interest and principal payments regarding its L bonds. An L bond is a purportedly high-yielding debt instrument created by GWG that financed the purchase of life insurance policies on the secondary market.
According to securities attorney Lawrence L. Klayman, Esq., "Brokerage firms that recommended GWG Holdings' L Bonds have a duty to conduct a due diligence review to determine whether the information that it relies upon is credible and whether any further investigation is required. The failure to reasonably conduct due diligence regarding GWG's L bonds may be a cause of action in a FINRA securities arbitration claim."
According to its recent Form 8-K, GWG failed to make an interest payment of approximately $10.35M and principal payments of approximately $3.25M on its L bonds. If GWG fails to make interest or maturity payments within a 30-day grace period, a default will occur. GWG also elected to suspend its L bonds sales effective January 10, 2022. GWG suspended its L Bond sales for eight months in 2021 due to the late filing of its Annual Report, and it subject to an ongoing, non-public fact-finding SEC investigation.
The sole purpose of this release is to investigate the sales practices of full-service brokerage firms relating to GWG's L bonds. Investors with losses in excess of $250,000 in GWG's L Bonds, and those who have information relating to the handling of their accounts at full-service brokerage firms regarding GWG's L bonds, are encouraged to contact Lawrence L. Klayman, Esq. at (561) 542-5131, and download our Special Investor Report.
KT is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KT has recovered more than $228 million for investors in FINRA arbitrations. KT has office locations in California, Florida, New York, and Puerto Rico.
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