GWG L Bond investors who have received notice of the $50,950,000.00 proposed class action settlement should understand the math involved in arriving at this number. According to the class action notice, this proposed settlement provides an estimated investment recovery of approximately $30.46 per $1,000.00. In other words, this will be a fraction of the original investment, pennies on the dollar. This does not include lawyers’ fees and other additional costs.
Potential violations by broker/dealers who sold GWG L Bonds to their clients include unsuitable recommendations, misrepresentations about the safety of the product, failure to disclose the risks of illiquidity and default, and inadequate supervision by the brokerage firms that approved these sales. Investors harmed by these practices may be able to pursue claims through FINRA arbitration or similar legal actions, even though the bankruptcy itself produced such a small recovery.
GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court on April 20, 2022. For many years before bankruptcy, approximately 40 broker/dealers sold clients close to $1.6 billion in GWG L bonds. They were called L bonds because they were backed by life settlements. These bonds were sold in $1,000 units.
Many investors were allegedly misled into believing GWG L Bonds were low-risk, secure investments, when in fact GWG L Bonds were high-risk and considered unsuitable for many investors, many of whom were retirees and elderly investors. GWG L Bonds were speculative, high-risk, and illiquid securities sold as private placements.
Soreide Law Group has successfully brought dozens of cases before FINRA involving GWG L Bond sales. If your broker/dealer or financial advisor recommended GWG L bonds and you’ve suffered significant investment losses, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses at: 888-760-6552.
Soreide Law Group works on a contingency fee basis, no fee if no recovery, and represents our clients nationwide before FINRA.
GWG L Bond investors who have received notice of the $50,950,000.00 proposed class action settlement should understand the math involved in arriving at this number. According to the class action notice, this proposed settlement provides an estimated investment recovery of approximately $30.46 per $1,000.00. In other words, this will be a fraction of the original […]
DAVID KITCHEN FRANKLIN (DAVID K FRANKLIN) was permanently barred by FINRA from acting as a broker or otherwise associating with a broker/dealer firm on 10/21/2025. Franklin was formerly registered as a broker with INTEGRAL WEALTH SERVICES LLC of New York, NY from 08/06/2018 - 06/09/2025. According to the FINRA report, without admitting or denying FINRA’s […]
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