GWG Holdings (GWGH) Investigation
The securities litigation attorneys at Colling Gilbert Wright & Carter are currently investigating reports that GWG Holdings (GWGH) may have made false and misleading statements to investors in connection with the issuance and sale of L Bonds. If you invested in GWG Holdings, you may have a claim for relief.
GWG Holdings manages a large alternative asset portfolio through the sale of alternative investment products. GWGH offers tradable securities called L bonds. In April 2019, GWGH merged with another company, Beneficient. After assuming control over the new combined entity, Brad Heppner reoriented the company towards private equity, stating the need to diversify its investment portfolio.
Despite the structural changes, GWGH has continued to raise large amounts of capital. However, the company failed to timely file its most recent Forms 10-K and 10-Q, leading NASDAQ to issue the company a potential delisting warning. According to the company’s most recent 10-Q, it “may not be able to sell additional L Bonds on terms as favorable to the Company as past transactions or in quantities sufficient to fund all of the Company’s operating requirements.” Further, GWGH may not be able to obtain additional borrowing under existing debt facilities or new loans from other third-party lenders. GWGH was unable to audit several of its financial statements in its most recent 10-Q. GWGH has nevertheless continued to raise money from investors, selling $114.1 million in L bonds in the third quarter of 2020 alone.
In an ominous statement, on August 1, 2021, GWG announced its previous financial statements should not be relied on.