Investors File GWG Holdings Lawsuits and Litigation

There are currently several Class Action lawsuits and FINRA claims against GWG Holdings, as well as against Beneficent Fiduciary Financial LLC, Emerson Equity, and multiple broker-dealers. These lawsuits are related to the company’s problems with liquidity and sales suitability to investors. With nearly 17000 investors, we expect GWG holdings lawsuits to surge in the coming months. Listed below are some of the issues involved. Before filing your lawsuit, read about these common problems to help determine if you should file. If you haven’t already, you should.

“Based on the calls we’ve been getting recently, it appears that some financial advisors who were marketing GWG-related investments (and GWG L-Bonds in particular) to client investors who were seeking safe, conservative, investments,” said Matthew Thibaut, Esq., a founding partner of Haselkorn & Thibaut (InvestmentFraudLawyers.com), a nationwide law firm that is representing numerous clients in pending claims.

A GWG investor hotline has been set up by Haselkorn & Thibaut, P.A. at 1-888-614-9356, where knowledgeable lawyers can respond to investors’ inquiries during a quick, free, and welcoming preliminary case evaluation call. Investors can then choose among their options for how to best address any losses they have incurred in their GWG investments.

Class action lawsuits against GWG Holdings

A national stockholders’ rights law firm filed a class action lawsuit against GWG Holdings, Inc. on behalf of all investors who purchased GWG L Bonds. The suit states that investors have until April 19th, 2022 to apply to be the lead plaintiff in the lawsuit. The suit alleges that GWGH executives stole millions of dollars from investors. Though PCA shareholders are quick to defend GWGH, other investors are not so eager. Many investors are now calling for the firing of GWGH’s CEO.

In the case of investors, the firm offers a number of different options to recover losses. The investor claims can be handled confidentially and efficiently, without the need for depositions or extensive discovery. In addition, investors can also opt to resolve their claims through FINRA arbitration, which is faster than a traditional lawsuit. However, investors should remember that filing a class action lawsuit against GWG Holdings may not be an option for all investors.

Class action lawsuits against Beneficent Fiduciary Financial LLC

A California court recently ruled that putative class action lawsuits against Beneficent Fiducial Financial LLC cannot proceed. The case involved a fiduciary duty claim filed under Missouri and California law. The Securities and Litigation Uniform Standards Act (SLUSA) bars state-law class actions that claim misrepresentation or omission. The Ninth Circuit reversed that decision, ruling that the plaintiffs had standing to pursue their claims under state law.

A recent case was filed against the company by the Firefighters’ Pension System of Kansas City, Missouri Trust. It challenged a merger between the company and an unaffiliated third party. Presidio’s CEO and financial adviser filed motions for dismissal, and the Court of Chancery denied those motions. The class action centered on the merger of a controlled company with an unaffiliated third party, which was not a good idea under the Revlon test.

Liquidity problems

GWG Holdings Inc. filed a lawsuit against its former shareholders over liquidity problems in early January of next year. A large shareholder, the Beneficient Company Group, held 366 million in L Bonds issued by the company. When the debt matures in April 2021, GWG encountered liquidity issues. Due to this issue, it pledged its entire portfolio of life insurance policies as collateral for its loans. The policies were worth approximately $790 million at that time.

The securities company issued illiquid life insurance bonds known as L Bonds. L Bonds were illiquid alternative investments that involved high risks. Brokerage firms were paid high commissions for each transaction. The money from the L Bonds was first invested in life insurance policies, but later stopped and invested in a company controlled by Heppner. This situation has forced the company to file for bankruptcy.

Lawsuit against Emerson Equity

The GWG Holdings lawsuit against Emerson is one of many related disputes. The broker-dealer, Emerson Equity, specializes in private placements, and was the managing broker-dealer for GWG Holdings. GWG, which holds life settlement assets, issued bonds backed by $1.6 billion of life settlement assets in January. However, GWG defaulted on the bonds, and has filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.

According to the plaintiff’s attorney, Emerson failed to perform adequate due diligence on the GWG L Bonds. Emerson Equity’s broker-dealers have a fiduciary duty to disclose risks and perform due diligence on their investment products. Investors may file a lawsuit against Emerson Equity in FINRA Dispute Resolution, an alternative to filing a class action suit. The White Law Group, a national securities fraud law firm, will handle your case.

from lawyers.buzz https://lawyers.buzz/investors-file-gwg-holdings-lawsuits-and-litigation/
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