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The Law Offices of Frank R. Cruz Announces Investigation of GWG Holdings, Inc. (GWGH) on Behalf of Investors
News provided byThe Law Offices of Frank R. Cruz, Los Angeles
Jan 28, 2022, 9:04 PM ET
LOS ANGELES, Jan. 28, 2022 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces an investigation of GWG Holdings, Inc. ("GWG" or the "Company") (NASDAQ: GWGH) on behalf of investors concerning the Company's possible violations of federal securities laws.
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On January 18, 2022, the Company disclosed that its Annual Report will likely be filed "later than the March 31, 2022 due date" because of "the recently disclosed decision of its independent registered public accounting firm to decline to stand for reappointment." The Company further disclosed that it "did not make the January 15, 2022 interest payment of approximately $10.35 million and principal payments of approximately $3.25 million with respect to its L Bonds" product and that it elected to "voluntarily suspend its L Bonds sales effective as of January 10, 2022."
On this news, GWG's stock price fell $2.17 per share, or 27.7%, to close at $5.65 per share on January 18, 2022.
Then, on January 27, 2022, The Wall Street Journal reported that GWG received a subpoena in 2020 from the Securities and Exchange Commission's division of enforcement ordering the Company to produce documents. The paper also reported that an attorney who represents multiple L Bonds investors said that most of his clients are retail investors who bought the bonds after hearing a sales pitch that the products were safe and would offer a comfortable income stream for their retirement, but that "they were shocked to learn that their money was used to pay old investors while the company has been under SEC investigation."
On this news, GWG's stock fell more than 20% during intraday trading on January 27, 2022, thereby further injuring investors.
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If you purchased GWG securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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