NEW YORK--(BUSINESS WIRE)--On April 20, 2022, GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas (Bankruptcy Petition # 22-90032, 4:2022bk90032). The bankruptcy filing is devastating for GWG L Bond investors and raises serious doubts about investors’ ability to get their principals back. Iorio Altamirano LLP (gwglawyer.com), which has been investigating the GWG L Bonds and is already representing several elderly, retired, and near-retirement GWG L Bond investors, is scheduling free consultations with investors to evaluate their potential claims and review their legal rights.
GWG L Bond investors will experience a long and painful process. Chapter 11 Bankruptcy cases can take anywhere from 17 months to five years for larger and more complex cases, and it can take months for debtors to begin distributing payouts to the highest priority class of creditors. As of September 2021, GWG had more than $2 billion in total liabilities, including $1.55 billion in L Bonds.
Furthermore, according to the GWG L Bond Prospectus, the L Bonds’ security interest is subordinate to other debt obligations. Given the nature of bankruptcy proceedings and the language in the prospectus, it is unlikely that GWG L Bond investors will ever see their principal back in full.
Despite the unwelcomed news of the bankruptcy filing, GWG L Bond investors can file individual arbitration claims to try to recover losses against the brokerage firm that sold them the speculative, high-risk, and illiquid L Bonds. Retail investors can file an individual arbitration claim against the selling brokerage firm without impacting an investor’s potential recovery from GWG Holding Inc.’s bankruptcy proceeding or through any class action lawsuits filed against GWG Holdings.
Iorio Altamirano LLP recently published the initial findings of its comprehensive investigation into GWG Holdings and continues to urge individuals who purchased L Bonds issued by GWG Holdings, Inc. to contact the firm to review their legal rights. Investors will receive a free case evaluation.
“Brokers and brokerage firms sold the GWG L Bonds as safe and secure investments,” said August Iorio, managing partner of Iorio Altamirano LLP. “Our investigation has revealed high-pressure sales tactics and widespread failures by brokers and broker-dealers to fulfill their obligations in connection with the sale of GWG L Bonds to retail investors,” according to Mr. Iorio.
“The missed payments were the tip of the iceberg. The reality is that GWG’s issues go way back. The time for investors to act is now. We are encouraging GWG L Bond investors to immediately commence a securities arbitration proceeding to recover investment losses,” added attorney Jorge Altamirano, managing partner of Iorio Altamirano LLP.
What Investors Can Do: GWG L Bond investors should contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation. The firm will review the terms of investors’ GWG L Bond investments at no cost. Customers may be entitled to compensation without paying any out-of-pocket fees or costs through a contingency fee arrangement with securities arbitration law firm Iorio Altamirano LLP. To set up an evaluation, email securities arbitration attorneys 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.
About Iorio Altamirano LLP:
Iorio Altamirano LLP is a national securities litigation law firm based in New York, NY. The law firm pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.
