GWG Holdings Investors: Haselkorn & Thibaut Provides Critical Update and Assistance

Nationwide investment fraud law firm Haselkorn & Thibaut issues an update for GWG Holdings investors regarding ongoing legal developments and recovery options.

HOUSTON, TX, UNITED STATES, September 26, 2024 /EINPresswire.com/ -- GWG Holdings, Inc. (NASDAQ: GWGH), a Dallas-based alternative asset company, filed for Chapter 11 bankruptcy protection on April 20, 2022. This filing has left thousands of investors, particularly those holding GWG L Bonds, in a state of financial uncertainty. The bankruptcy process has revealed that GWG's assets were highly speculative and illiquid, contrary to how these investments were often presented to retail investors. (including, but not limited to: FINRA Case No. 23-03209).

The GWG Holdings bankruptcy has left many investors facing significant financial losses and uncertainty. Haselkorn & Thibaut remain committed to helping these investors understand their rights and pursue all available avenues for recovery.

Contact Haselkorn & Thibaut today at 1-888-784-3315 or visit their website to schedule your free consultation and receive the GWG Investor Guide. Don't let the complexities of this situation prevent you from seeking the compensation you may be entitled to – act now to protect your financial future.

Timeline of GWG's Financial Troubles

The company's financial instability became apparent in early 2022 when GWG missed principal and interest payments totaling $13.6 million on its L Bond issuances. This default signaled deeper issues within the company's financial structure. Before the bankruptcy filing, GWG had been actively issuing high-yield bonds from 2012 to April 2021, accumulating significant liabilities.

As of September 30, 2021, GWG reported approximately $2 billion in net liabilities, with $1.3 billion attributed to L Bonds. The company's share price experienced a dramatic 49% decline between November 2021 and March 2022, falling from $10.51 to $5.14.

GWG's Bankruptcy Plan and Asset Liquidation

On August 1, 2023, GWG's bankruptcy plan was activated, marking a new phase in the company's financial saga. The plan outlines two primary actions:
1. Complete liquidation of GWG Holdings
2. Establishment of two liquidating trusts: the Wind Down Trust and the Litigation Trust

A crucial aspect of this plan is the termination of GWG L Bonds. In their place, L Bondholders have been issued "New Series A1 WDT Interests." This development has significant implications for bondholders, who must now navigate a complex process to understand their new position and potential for recovery.

GWG Holdings is left with four main assets as it undergoes liquidation:

1. Life insurance policy portfolio
2. Equity stakes in FOXO
3. Equity stakes in Beneficient
4. Potential litigation claims

The value and liquidity of these assets remain uncertain, adding to the situation's complexity for investors seeking to recover their losses.

Legal Options for GWG Investors

Haselkorn & Thibaut, P.A., a leading investment fraud law firm, actively represents GWG L Bond investors who have incurred losses. The firm's experienced attorneys are pursuing claims against the broker-dealers and financial advisors who marketed and sold these high-risk, unrated securities to retail investors.

Investors who purchased GWG L Bonds or other GWG-related investments may have grounds for legal action if:

• The investments were misrepresented as safe or low-risk
• The financial advisor failed to disclose the speculative nature of the investments
• The investments were unsuitable for the investor's risk tolerance or financial goals
• There was a lack of proper due diligence by the broker-dealer

For many GWG investors, FINRA arbitration presents a viable path to recover their losses. This process allows investors to seek compensation from their advisors and the firms they represent in a private, expedited manner. Haselkorn & Thibaut has a proven track record in FINRA arbitration, with over 50 years of combined experience and a 98% success rate.

Given the ongoing bankruptcy proceedings and the complex nature of the GWG Holdings situation, time is of the essence for affected investors. Haselkorn & Thibaut urges all GWG L Bondholders and investors in other GWG-related products to take immediate action:

1. Review your investment portfolio and identify any GWG Holdings products
2. Gather all relevant documentation related to your GWG investments
3. Contact Haselkorn & Thibaut for a free, confidential consultation to discuss your legal options

Free Consultation and Investor Guide Available

Haselkorn & Thibaut has established a dedicated GWG investor hotline at 1-888-784-3315. Experienced attorneys are available to provide a fast, free, and friendly preliminary conversation to discuss your situation and potential recovery options. Additionally, the firm is offering a complimentary GWG Investor Guide to help investors understand their rights and the complexities of the current situation. Please visit the website for more information.

About Haselkorn & Thibaut, P.A.

Haselkorn & Thibaut is a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas. The firm specializes in representing investors who have suffered losses due to broker misconduct, unsuitable investment recommendations, and securities fraud.

The sole purpose of this press release is to investigate how various firms, including FINRA broker-dealer firms and Registered Investment Advisory firms, have researched, marketed, sold, and supervised GWG securities investments to investor clients or how they advised, recommended, and implemented such investment strategies that included these or similar investment products.

With a client-first approach and a "No Recovery, No Fee" policy, Haselkorn & Thibaut is committed to helping GWG investors navigate this challenging situation and pursue maximum recovery from their losses.

Matthew Thibaut
Haselkorn & Thibaut, P.A.
+1 888-784-3315
jhaselkorn@htattorneys.com