Silver Law Group is investigating potential claims related to investments in L Bonds offered by GWG Holdings. The company missed recent key SEC filing deadlines and these investments may be in serious financial trouble. In April 2021, GWG temporarily paused sales of L Bonds. In May 2021, Nasdaq formally notified GWG of its noncompliance with listing rules.
GWG Holdings (GWGH) is a Dallas-based financial services firm that offers a variety of services, including life insurance and alternative investments. GWG sold billions of dollars worth of L Bonds over the past several years, and investors are now growing concerned about the status of these investments.
What Are L Bonds?
Generally speaking, L Bonds are a relatively new financial product that purportedly offers higher yields than typical publicly traded, fixed income bonds. L Bonds are sold by life insurance companies that buy back the policies from policyholders. The bonds are supposed to help finance the purchase of the policies.
According to a prospectus published by GWG for the offering of $2 billion of L Bonds, the bonds were sold with varying maturity terms ranging from 2 years to 7 years, with interest rates ranging from 5.50% to 8.50%.
Risks Of Investing In L Bonds
L Bonds are pitched as paying a higher yield than publicly traded, fixed income offerings, but are in fact risky, speculative products. Because they are not publicly traded, they are illiquid, leaving investors with no way to liquidate or sell their position for cash if needed. Moreover, because the bonds are not publicly traded, they are not subject to the same regulatory scrutiny or oversight as publicly traded investments, and investors are offered little insight into the true value of their investment.
Contact Silver Law Group Today To Discuss Your Investment
If you invested in L Bonds, GWG Holdings was obligated to uphold representations made to you in the offering materials and to prudently manage your investment. Silver Law Group’s investigation has uncovered that investors may incur losses on these investments.
Silver Law Group is experienced in representing investors in securities and investment fraud cases nationwide. Scott Silver, managing partner of Silver Law Group, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and has extensive experience representing investors in securities and investment fraud cases.
There may be a path to recovery of your losses. If you or someone you know invested in L Bonds offered by GWG Holdings, please contact Silver Law Group for a confidential consultation at email@example.com or toll free at (800) 975-4345. Most cases are handled on a contingency fee basis, meaning you don’t owe us any money unless and until we recover for you. Contact us today to find out how we can help.