Investors File Lawsuits to Recover Losses From GWG Holdings Bankruptcy

If you’ve been recently paying attention to the news, you’ve likely heard about the GWG Holdings bankruptcy. While this company is best known for selling life settlements and L Bonds, it filed for bankruptcy in 2022. In addition, GWGH has not paid any interest or redeemed any L Bonds as of 2022.

So what can investors do? The short answer is that investors can file lawsuits and FINRA claims.

Matthew Thibaut, Esq., Haselkorn & Thibaut (InvestmentFraudLawyers.com) a nationwide investor rights law firm, commented that it appears that some financial advisors that were marketing GWG Holdings related investments (and GWG L Bonds in particular) were not accurately representing the level of risk associated with these high-yield securities.

Haselkorn & Thibaut has opened up a GWG investor hotline at 1-888-614-9356, and they have experienced attorneys available to provide a fast, free, friendly case evaluation for investors with questions regarding their GWG investments.

Below are some quick points on GWG Holdings and the bankruptcy.

GWGH is a life settlement company

The GWGH is a life settlement company that has been in business for over 10 years. The company has acquired more than $1.7 billion in life insurance benefits. Through life settlements, GWG has paid seniors more than $283 million, which is nearly two-thirds more than the surrender value offered by insurance carriers. The GWGH has been rated “A” by the Better Business Bureau, a rating usually attributed to companies with a long track record of paying policyholders.

GWG Holdings, Inc. is a specialty finance firm and one of the leading purchasers of life insurance policies on the secondary market. In the last five years, GWG Life has paid seniors over $457 million in exchange value. As of September 30, 2017, GWG Holdings had a portfolio worth $1.6 billion in face value of policies. While this number is small compared to some companies, it is indicative of their track record and success.

GWG sold L Bonds

A publicly-traded company, GWG Holdings Inc., specializes in selling life insurance policies and alternative investments. In the January of this year, the company paused the sales of its L Bonds and retained a restructuring advisor to analyze options. GWG had previously failed to pay investors for millions of dollars in L Bonds and subsequently suspended all L Bond sales and redemption requests. This caused significant losses to investors.

L Bonds are high-yield debt instruments used to finance the purchase of life insurance policies in the secondary market. They were highly speculative and illiquid, and investors could only sell them back to GWG Holdings for a redemption fee. While this may sound like a good deal for investors, the risks were not fully disclosed to many investors. Investors need to contact an attorney as soon as possible if they purchased GWG Holdings’ L Bonds.

GWG filed for bankruptcy in 2022

GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection on April 20, 2022. The company announced in a filing that it would not be able to file its Form 10-K for 2019. The reason for the delay was that the independent registered public accounting firm that the company has been working with quit in January. Moreover, the company missed numerous deadlines in the past. So, it was no surprise that it decided to file for bankruptcy.

While the bankruptcy process is not a simple process, there are several ways for investors to recover their losses. For example, investors can file a class action lawsuit against GWG if they feel that they were misled by the firm or sold investments that did not match their needs. Using a legal tool like arbitration is often faster than filing a lawsuit and can result in a more effective resolution.

GWG has not paid interest or redeemed any L Bonds in 2022

Earlier this year, GWG paused sales of its L Bonds. According to a January investor letter, the Board of Directors engaged a restructuring advisor to evaluate the company’s financial obligations. In a previous 8-K filing, the company admitted that it had failed to make millions of dollars in L Bond payments. While the company has not paid interest on its L Bonds in 2022, it has deferred requests for redemption.

Since then, the company has failed to pay any interest or redeem any L Bonds. However, investors can make up for their losses by buying the company’s stock. In addition to that, GWG Holdings has filed a registration statement for a continuous offering of up to 2 million units of L Bonds, with a principal amount of $1,000 per the whole unit. The company intends to use the net proceeds of the sale of the securities to increase its alternative asset exposure and fulfill other obligations. In the meantime, investors are left wondering whether the company will be able to recover from its bankruptcy.

GWG Holdings faces lawsuits from investors

GWGH is facing several lawsuits filed by investors, and its CEO is facing allegations of enrichment. Heppner and other executives are accused of stealing millions of dollars from investors. While PCA shareholders have been quick to defend the company, other investors aren’t so quick to back it up. Heppner’s actions have sparked several class action lawsuits, with some even calling for GWGH’s CEO to be fired.

The lawsuits allege that brokerage firms failed to conduct due diligence on GWG Holdings’ L Bonds and recommended illiquid investments. The brokerage firms, in turn, earned substantial commissions by selling the bonds. When the company issued L Bonds, it initially invested the money in life insurance policies. It later stopped investing in life insurance policies and started investing the money in The Beneficient Company Group, LP, a private company controlled by Heppner.

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3 Cases Selected For Elmiron Lawsuits

Three cases have been identified by the U.S. District judge who is responsible for all Elmiron lawsuits. These cases will be ready for a series of “bellwether” jury trials that are scheduled to start in 2023.

The prescription drug Elmiron (pentosan sulfate sodium), is used to treat interstitial cystitis. It is also prescribed for the treatment of painful bladder syndrome. Users often take it for years as there is no cure. Hundreds of lawsuits have now been filed alleging that the drug caused permanent vision problems in some users, including pigmentary maculopathy, a type of retinal damage.

The complaints allege that Johnson & Johnson and Janssen Pharmaceuticals, its subsidiary, provided misleading and false information for decades and failed to warn patients and doctors about the importance of monitoring for vision changes during bladder drug use. This drug is now known for blurred or distorted vision and blindness.

Side effects of Elmiron include vision loss and retina damage, also known as pigmentary maculopathy.

Examine a Case

Consolidated Pretrial Proceedings were established in December 2020 to address common questions of law and facts raised in Elmiron lawsuits. This centralized the litigation before U.S. District Judge Brian R. Martinotti, District of New Jersey, and allows for coordinated discovery and pretrial proceedings.

Judge Martinotti established a “bellwether” process to promote potential Elmiron settlements and to gauge juries’ reactions to evidence and testimony that will repeated throughout the litigation. This process involved a small number of representative claims going through a case-specific discovery and being prepared for an series of three early trial trials . These are expected to start in January 2023. March 2023. May 2023.

Each party chose 10 cases to be served in the Bellwether Discovery Pool. This made a total of twenty. They were each given the task of selecting one case to be tried and each side made recommendations to the Court regarding the third claim.

In order to qualify for a bellwether case, the plaintiff had to have been prescribed Elmiron and taken it on or before November 7, 2021.

Judge Martinotti issued a Court Order (PDF) on May 9 identifying the last three claims to be presented to juries.

Julia, Brian Manning, and were the plaintiffs in the case. The case was filed in May 2021 by Julia (PDF). The lawsuit claims that Julia Manning used Elmiron between 2008 and 2014. She suffered injuries to both her eyes. Like other plaintiffs, the lawsuit shows that Julia Manning and her husband took Elmiron from 2008 to 2014. They were not warned of the serious eye injury risk.

The case in which the defendants were selected was filed by Opal Broussard (PDF). in January 2021. Broussard claims that she has suffered vision loss and macular damage as a result years of Elmiron usage.

Maria Windham (PDF), also from Louisiana, filed the third case. It was chosen by the court and recommended to the defendants. According to her lawsuit, Windham used Elmiron between 2012 and 2014. She then suffered retinal pigmentary changes including macular degeneration.

Although the results of these trial dates are not binding on any other plaintiffs, they can help to gauge the likelihood that juries will respond to evidence and testimony that will be repeated throughout the litigation.

Elmiron Vision Loss Risks

Although drug manufacturers were aware of reports of vision loss and deterioration in long-term users, warnings about the need to monitor vision for Elmiron side effects did not appear on the label until June 2020.

Regulators informed doctors and users for the first time about the possibility of pigmentary maculopathy due to Elmiron exposure. This has caused users to have difficulty adapting to dark light, spots, or floaters in their vision as well as complete blindness.

Researchers are learning more about the causes of Elmiron’s eye issues. A number of new studies have been published in the last few months. These studies will provide convincing evidence for plaintiffs.

A study published in the medical journal Clinic Ophthalmology identified a distinct signature for Elmiron-related maculopathy. This signature can be identified by multimodal imaging. A month later, a study published in the Current opinion in Ophthalmology found that about one in five long-term Elmiron users may have retinal maculopathy. This led to recommendations for eye doctors to ask about Elmiron exposure in patients who present with undiagnosed retinal pigment change and difficulty adapting in dim or dark light.

It is expected that many thousands of complaints will be filed in the United States as more eye doctors diagnose Elmiron’s retinal injury.

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How to Become a Whistleblower

Being a whistleblower means you’re willing to report certain types of wrongdoing. The wrongdoing has to affect the public in some way, and you must report it in the public interest. The law protects whistleblowers, who can raise concerns about past, current, or future incidents. Moreover, you can become a whistleblower at any time and can seek independent legal advice if you’re unsure of what to do.

Protections from retaliation

Whistleblowers may be rewarded for their efforts by receiving back pay, attorneys’ fees, and a clean record. If their actions lead to retaliation, officials may be subject to disciplinary action, fines, or both. Retaliation can take many subtle forms, from giving someone the “cold shoulder” to intentionally failing to provide the resources they need. That’s why it’s important to include role-play scenarios in your whistleblower training program.

In addition to providing protections for whistleblowers, the OSC also protects the identities of those they represent. As a whistleblower, you can report wrongful conduct anonymously. In addition to protecting your identity, whistleblowers may also receive protection from retaliation from the government and their families. Additionally, you may be protected from retaliation if you decide to report a wrongdoing to the media, or to your local parliament. This protection applies to “public interest disclosures” if you believe there are violations of laws and regulations affecting occupational safety. The law also allows the whistleblower 90 days from the time he or she made the initial report.

Rewards for whistleblowers

The Stockholm Institute of Transition Economics has published a working paper refuting some common objections to reward programs for whistleblowers. This paper cites data showing that 83% of whistleblowers reported the matter internally before going to the SEC. Additionally, 90% of False Claims Act claimants first contacted a supervisor before filing the claim. While high reward payouts may initially sound negative, they do serve an important purpose.

Some critics of whistleblower rewards argue that monetary rewards for reporting a wrongdoing crowd out the moral motivations that led the individual to report the activity. These individuals should be acting with a clear sense of moral righteousness and civic duty, not out of self-interest or financial reward. Others have expressed concerns about the cost of administering reward programs, as well as spurious tips. However, many studies have found the opposite.

Requirements to become a whistleblower

To be eligible to become a whistleblower, an individual must provide original information to the Securities and Exchange Commission (SEC). This information must result in a successful action by the SEC, which is likely to result in monetary sanctions of at least $1 million. To become an eligible whistleblower, an individual must provide the information to the SEC in the correct format and manner. This process is not for companies.

While it is possible to become a whistleblower if you’re working in a company, you should always be aware of your rights. While reporting wrongdoing, you need to be clear on your purpose. The information should be in the public interest. The government does not always have the resources to investigate wrongdoing. Therefore, a whistleblower’s role is essential to detecting and investigating wrongdoing.

Retaliation against whistleblowers

Retaliation against whistleblowers should be illegal, but it often happens. Federal and state laws protect whistleblowers who report potentially illegal activities to the government. Once an employee reports such violations to the SEC, the company may not take retaliation against him or her into account in any subsequent internal disclosures. The law provides a broad range of enforcement mechanisms to ensure whistleblowers receive justice.

In addition to monetary damages, employers can be penalized for other forms of retaliation, including threatening employees, blackmail, and false rumors. Retaliation is prohibited unless the employer has actually violated the law. The retaliatory actions must be sufficiently blatant and unreasonable for the employee to be able to receive damages. The law also gives employees a right to reinstate their old jobs.

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How Are Whistleblowers Protected?

You’ve probably worried about your career, peace of mind, financial security, and integrity as a whistleblower. In the past, whistleblowers have uncovered corporate secrets and changed products, brought attention to government overspending, and raised questions about the safety of nuclear power plants. Whistleblower stories regularly make headlines, and their important contributions keep employers honest. Read on to learn more about your protections as a whistleblower.

Protection from retaliation

Whistleblower protection laws are a critical part of the Dodd-Frank Act. The Consumer Product Safety Improvement Act (CPSIA) prohibits employers from retaliating against workers who report safety issues or possible violations of the law. This legislation protects whistleblowers and encourages companies to create a “speak up” culture. Unfortunately, many companies fail to implement these laws.

The University of Michigan has a policy in place to protect whistleblowers. If an employee believes they are being retaliated against for speaking out about a potentially illegal practice, they should contact Human Resources or the Academic Personnel Office. While they cannot pursue legal action against their employers for violating university policies, they can file a grievance if they feel they are a victim of retaliation.

In addition to protecting whistleblowers, whistleblower laws also protect employees who report illegal activities. Specifically, employees cannot be fired for filing a complaint about unsafe work practices or reporting the illegal use of pesticides. Further, whistleblowers cannot be penalized for threatening to disclose their employer with criminal penalties. However, there are exceptions to this rule, as certain types of whistleblower actions are potentially dangerous to national security.

Protection from demotion

While whistleblowers can be punished through termination or a demotion, they are also protected from retaliation, which can range from overt to subtle. For instance, a whistleblower can be written up for reasons that have little or nothing to do with the protected activity, such as revealing a scam or exposing a flaw. This type of retaliation may even lead to future termination. Whistleblowing usually involves subjects such as fraud, theft, and violations of tax laws.

Depending on the law, whistleblowers can also seek damages for retaliation, such as reduction in pay or promotion, intimidation, and wrongful demotion. Depending on the circumstances, workers may be eligible to receive special damages under the Sarbanes Oxley Act if they report violations of the securities law. This protection can range from a demotion to a complete firing. The key to protection under Sarbanes Oxley is to know that you can file a lawsuit against an employer if they take retaliatory action against an employee who reports fraud or misconduct.

Protection from legal action

Under the protection from legal action for the whistleblowers act, employees can report any unethical practice without being subjected to retaliation from their employers. However, they must protect their identities and credibility, as well as prove that the misconduct has caused the employee detriment. The following are some tips to help protect whistleblowers from legal action. You may be interested to read these tips.

The definition of a protected disclosure under whistleblower laws varies depending on the specific statute or body of common law. Whistleblower laws apply to employees of covered companies, including contractors and some privately held businesses. Some examples include SOX, which protects employees of certain publicly traded companies with certain reporting obligations to the Securities and Exchange Commission. Moreover, there are several common-law whistleblower protections for certain workers.

Protection from harassment

While some states provide no protection against harassment, others do. Generally, whistleblowers are protected from retaliation by both federal and state laws. These laws are important for employees who report illegal activities or practices, refuse to remain silent about them, or otherwise make reports of harassment or discrimination. In these cases, whistleblower protection laws may provide the most effective solution to the problem. However, the protection of whistleblowers may not be sufficient. While it can provide some relief, there are still many factors that need to be addressed.

State laws on harassment differ from state to state, so it’s important to know what your rights are before taking any action. Check your employment contract to see whether you have a contractual obligation to participate in the internal whistleblowing system. Also, read your employer’s policies, including the policy handbook. You can also read whistleblower law legal answers to learn more about your state’s laws. These attorneys are experienced in protecting whistleblowers and their rights.

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How do NSF Fees Work?

If you spend money from your checking account, your bank or credit union might charge you an NSF Fee

According to Investopedia fees and other fees charged to banks can be a source of disagreement between banks, consumers, and banks.

Customers claim that banks deceive customers by charging multiple NSF fees or high fees to cover small overdrafts.

Many people are concerned that banks will take a large part of their income from the most financially vulnerable customers. TD Bank filed a class-action lawsuit claiming that the bank’s NSF fees policies were unfair.

These fees cost banks billions every year. CNBC reports banks received over $30B in overdraft fees by 2020. Consumers paid an average of $329 per month in fees in 2017.

What is the NSF fee?

NSF fees range from $10 to $35. This could lead to higher fees and more arrears.

Fees for electronic purchases or bounced checks are subject to non-sufficient funds fees

NSF Fees Versus Overdraft Fees

NSF fees are different from other fees such as the Overdraft Charges.

Overdraft fees can be applied to purchases that exceed a customer’s account funds. Credit unions are often sued for their allegedly corrupt fee practices.

NSF fee are charged to customers who spend more than their bank account can handle.

NSF Fees and Bounced Checks

In many cases, an NSF fee can be assessed. These charges can be incurred if you purchase more than your credit limit, or write checks that exceed the bank account balance.

Customers may also be charged multiple NSF fees when the bank attempts to resubmit the transaction.

Sometimes checks can bounce if they are processed using different payment schedules. Checks can sometimes bounce when they are processed according to different payment schedules. This happens because your funds may not be sufficient depending on when the check clears.

A person who writes checks to get the money they don’t have may be required by law to pay fees.

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How Do Whistleblowers Get Paid?

There are many ways to get compensated for reporting fraud, and there is a system to help whistleblowers receive this compensation. If you are concerned about your own business, you can work with the SEC, IRS, and Commodity Futures Trading Commission to get compensation for exposing a fraudulent practice. Follow these steps to get the best reward possible. But first, consider who will pay you. Generally, government entities will pay whistleblowers 15 to 30 percent of the amount recovered.

SEC

SEC whistleblowers receive payments to reveal misconduct in securities and financial markets. Last week, the SEC announced it awarded $40 million to four whistleblowers. Typically, the Commission pays whistleblowers 10 to 30 percent of the government recovery when monetary sanctions are over $1 million. In this case, the SEC and another agency jointly awarded the whistleblowers $37 million each. The rewards are significant, and whistleblowers are in a unique position to interpret the evidence and make the correct interpretation of the information.

The SEC whistleblower program has been successful since 2012, awarding more than $735 million to 127 whistleblowers. The average award is $5.7 million. Since then, the SEC has paid out nearly $100 million in awards to whistleblowers, demonstrating the SEC’s commitment to enforcing the securities laws. However, SEC whistleblowers must provide credible tips, in a timely manner, to receive these rewards.

In the past year alone, the SEC received over 52,400 tips from whistleblowers. Since the program launched in 2011, it has led to numerous enforcement actions, resulting in more than $4.8 billion in monetary sanctions for wrongdoers. With that, the SEC Whistleblower Program has been instrumental in exposing significant investment fraud schemes. If you’re interested in becoming an SEC whistleblower, you can learn more about the process and how you can apply.

IRS

IRS whistleblowers get paid when they uncover illegal activity by IRS employees, contractors, or agents. The rewards vary and depend on what kind of information was provided and how useful the information was in prosecuting the case. The more documentation you have, the higher your chances of collecting a reward. However, whistleblowers should be aware that they must provide confidential information. If you do not have this information, you may be eligible for a lesser reward.

In order to receive a reward, an IRS whistleblower must have knowledge of illegal tax practices. Often, the individual will be an employee, an auditor, or an accountant. But federal employees do not qualify. Instead, the person must have obtained the information from his or her job or have been convicted of a tax fraud crime. To qualify for an award, you must have a substantial amount of evidence and be willing to provide accurate information to the IRS.

The IRS offers rewards of up to 30% of the recoveries of tax fraud. To qualify for the reward, you must be an individual taxpayer with at least $200,000 in gross income. The award amounts are smaller for claims made from public sources. And the payment amount may be smaller if the individual taxpayers are foreign nationals. Despite the low rewards, the rewards can add up. And the best part is, these payments are not limited to U.S. citizens. Foreign citizens often make up a significant portion of IRS Whistleblower submissions.

Commodity Futures Trading Commission

A recent award of nearly $200 million to a whistleblower by the Commodity Futures Trading Commission was made possible by the whistleblower’s credible information. The whistleblower’s information was used to open investigations that led to a successful enforcement action. The whistleblower also helped CFTC secure two related enforcement actions from foreign regulators. The payout for whistleblowers is an incredible example of the value of reporting a breach of government regulations.

In order to claim payment for a whistleblower’s tip, an individual must submit a completed Form TCR to the CFTC. The form can be submitted electronically on the CFTC’s website, mailed, or submitted through an online portal. The Form TCR should be as detailed as possible and include all documentary evidence, if applicable. If the whistleblower is anonymous, an attorney must file the claim. The attorney must obtain proof of identity.

The SEC’s whistleblower program has been phenomenally successful. Whistleblowers have received almost $5 billion in monetary sanctions in recent enforcement actions. Almost $1.3 billion of these monies was returned to investors as a result of whistleblowers’ efforts. In 2010, the Dodd-Frank Act established the SEC and CFTC whistleblower programs. In addition to offering whistleblowers confidentiality, the Act also allows whistleblowers to claim double back pay and litigation costs.

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Covidien Hernia Mesh Lawsuit

After rejecting an earlier request to consolidate the litigation in 2020, this is the second time that the panel will decide whether to create a Covidien mesh lawsuit MDL.

The U.S. The U.S.

A request to create a Covidien Mesh MSDL in June 2020 was rejected by the panel. The panel found that there were not enough cases to warrant formal pretrial proceedings in federal courts. The manufacturer says that the number of claims is “increasingly ballooning”, with at most 73 lawsuits pending in seven U.S. District Courts.

Each of the Covidien hernia-mesh lawsuits raises similar questions of fact or law. The manufacturer asked that the litigation be centralized in front of one U.S. district judge to prevent duplicative discovery of common issues in claims, avoid conflicting pretrial rulings, and increase judicial efficiency.

Review of cases involving different types of hernia repair products.Examine a Case

Covidien, filed a renewed motion to the U.S. JPML in February calling for consolidation of hernia-mesh cases. It indicated that it was unable in 2020 to disclose that tolling agreements had been in place with over 6,000 claimants. The parties agreed to delay filing lawsuits and to try to negotiate hernia-mesh settlements. According to the company, there are a lot of complaints being filed in federal and state courts across the country as tolling agreements expire.

Complex product liability litigation is where many claims are filed in federal court by people who have suffered similar injuries from the same or similar products. It is common for federal courts to centralize pretrial proceedings.

Covidien asks that all hernia mesh cases pending or brought forward in the future through federal courts be transferred to the U.S. District Court of the District of Massachusetts. All but six cases are being pursued.

The JPML published a Notice Of Hearing Session (PDF) April 14 in which it announced that oral arguments will be heard on the creation of a Covidien mesh multidistrict litigation on May 26 at the Joseph F. Weis Jr. U.S. Pittsburgh Courthouse, Pennsylvania.

At least three additional hernia-mesh MDLs have been established for claims involving polyethylene products. These include more than 15,400 Bard hernia lawsuits centralized within the Southern District of Ohio and 3,600 Ethicon Ethicon Physiomesh lawsuits located in the Northern District of Georgia. There are also 3,251 Atrium Claims C-Qur lawsuits located in the District of New Hampshire.

If the Covidien Mesh lawsuits are approved for consolidation, it is likely that the U.S. District judge will choose a few representative cases to be tried early. This is to gauge how juries might respond to evidence concerning the alleged design flaws in products such as Covidien Parietex and Covidien Symbotex.

Although the bellwether trials’ outcomes will not be binding upon other plaintiffs, it may drive them to settlements that would eliminate the need for hundreds more individual trials.

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