If you are one of the estimated 27,000 investors who purchased L Bonds from GWG, you may be unsure of how to respond to the news that GWG Holdings, Inc. and some of its subsidiaries recently filed for a Chapter 11 bankruptcy. The company is estimated to have $1.6 billion in debt. As an investor, you have options for trying to recover your investment, and it’s important to consider which are the most likely to help you recoup your investment.
While L Bond investors will be included as creditors in the Chapter 11 proceeding, it’s unlikely that this will result in a substantial repayment of your investment. Instead, you may receive pennies-on-the-dollar.
Therefore, your best bet for recovery may be through a Financial Industry Regulatory Authority (FINRA) arbitration. FINRA is a government-authorized not-for-profit organization that oversees U.S. broker-dealers. Investors can request either mediation or arbitration to resolve a dispute between the investor and a broker-dealer or their firm. FINRA proceedings tend to be resolved much more quickly, and at less expense, than traditional lawsuits.
Once again, the actions against broker-dealers proceed more quickly and are more likely to result in compensation. Silver Law Group represents large and small investors. As many L Bond investors are under $50,000, FINRA small claims process may be in your best interest. Silver Law Group can represent you in claims against the brokerage firm with limited expense as hearings are conducted by Zoom or telephone and only paper discovery is permitted.
If you have lost money due to an L Bond investment with GWG Holdings, don’t wait: Call Silver Law Group. We are an experienced law team that specializes in investment fraud litigation—to help clients like you get the recovery you deserve. For a free, confidential consultation, send us an email or call us today at (800) 975-4345.