Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against GWG Holdings, Inc. (GWGH)
LOS ANGELES, March 07, 2022 (GLOBE NEWSWIRE) — Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming April 19, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired GWG Holdings, Inc. (“GWGH” or the “Company”) (NASDAQ: GWGH) L Bonds directly in GWGH’s L Bond Offering (“LBO”) pursuant to a registration statement that became effective on June 3, 2020.
If you suffered a loss on your GWGH investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/gwg-holdings-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
In 2018, GWGH announced a major shift in its stated business purpose: instead of investing in life insurance policies, the Company would invest in The Beneficient Company Group L.P. (“Ben LP”), an entity founded and controlled by Brad K. Heppner, the then-Chairman of the Board of Directors of GWGH. In the period leading up to the LBO, GWGH engaged in a series of transactions that culminated in the Company’s consolidation of ownership and control of Ben LP.
GWGH was forced to discontinue the LBO in April 2021 when it was unable to file its 2020 annual report. The Company ran into liquidity problems and by August 2021, GWGH had pledged its entire portfolio of life insurance policies as collateral for loans to keep itself afloat. In November 2021, GWGH spun Ben LP off as an independent entity.
In November 2021, the Company disclosed that it had received an SEC subpoena in October 2020 for documents and information relating to the LBO and its accounting practices.
In January 2022, GWGH missed its payments of interest and principal due and owing to L Bond holders and announced the hiring of restructuring counsel. In February 2022, GWGH disclosed that it was unable to make the payments of the L Bonds within the grace period, and that it would notify L Bond holders if and when L Bonds would be able to make any future payments.
The L Bonds now lack value because of GWGH’s inability to service them.
The complaint filed in this action alleges that GWGH misrepresented its investment in Ben LP.
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If you purchased or otherwise acquired GWGH L Bonds directly in the LBO, you may move the Court no later than April 19, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
[email protected]
www.glancylaw.com
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