RETRANSMISSION: GWG Holdings, Inc. L Bonds - The Securities Law Firm of Menzer & Hill, P.A. Is Pursuing Claims Against Those Broker-Dealers That Sold GWG L Bonds to Its Clients
This News Release is a small correction to a previous news release on January 26th, 2022, which did not include the ticker symbol for "GWG Holdings Inc.".
Boca Raton, Florida--(Newsfile Corp. - January 26, 2022) - The Securities Law Firm of Menzer & Hill, P.A. (www.menzerhill.com) announced today that it is pursuing claims against those brokerage firms that sold L Bonds to their clients.
On January 15, 2022, GWG Holdings, Inc. (NASDAQ:GWGH) ("GWG") failed to make interest payments of more than $10 Million and principal payments of more than $3 Million, relating to its L Bonds to its investors. Moreover, if GWG fails to make payment within 30 days, the company may be in default.
If GWG defaults, certain noteholders may elect to accelerate their L Bonds, causing them to be immediately due and payable. If this were to happen, there is a risk of a potential "run on the bank."
Gary Menzer, Managing Partner with the Securities Law Firm of Menzer & Hill says, "where there's smoke, there's fire. We've been concerned with L Bonds for several years, and it appears, this may just be the start of the unfortunate downfall related to these investments."
Menzer & Hill has represented hundreds of clients that lost significant lifesavings in non-traded REITs and business development companies (BDCs), and many of these same investors, were also sold L Bonds. According to partner Michael Hill, "whether it's non-traded REITs or L Bonds, they are both extremely risky and speculative products that are continually sold to investors, because of the outrageous internal fees and commissions the broker and broker-dealer receives."
Fortunately, those investors that purchased L Bonds or non-traded REITs/BDCs, may be able to recover their losses through the FINRA arbitration process. Under FINRA rules and regulations, broker-dealers are required to conduct proper due-diligence before recommending such investments to their clients. Furthermore, broker-dealers are required to properly disclose all the risks related to such investments, as L Bonds along with non-traded REITs and BDCs are extremely risky investments to begin with and are unsuitable for most investors.
For a free case evaluation or to discuss any other investment losses, please contact the Securities Law Firm of Menzer & Hill, P.A., at 888-923-9223, or visit us on the web at www.menzerhill.com.
Contact
The Securities Law Firm of Menzer & Hill, P.A.
Gary Menzer - 888-923-9223
[email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/111798