The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of GWG Holdings, Inc. (GWGH) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons that purchased GWG Holdings, Inc. (“GWGH” or the “Company”) (NASDAQ: GWGH) L Bonds directly in GWGH’s L Bond Offering (“LBO”) pursuant to a registration statement that became effective on June 3, 2020. GWGH investors have until April 19, 2022 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

In 2018, GWGH announced a major shift in its stated business purpose: instead of investing in life insurance policies, the Company would invest in The Beneficient Company Group L.P. (“Ben LP”), an entity founded and controlled by Brad K. Heppner, the then-Chairman of the Board of Directors of GWGH. In the period leading up to the LBO, GWGH engaged in a series of transactions that culminated in the Company’s consolidation of ownership and control of Ben LP.

GWGH was forced to discontinue the LBO in April 2021 when it was unable to file its 2020 annual report. The Company ran into liquidity problems and by August 2021, GWGH had pledged its entire portfolio of life insurance policies as collateral for loans to keep itself afloat. In November 2021, GWGH spun Ben LP off as an independent entity.

In November 2021, the Company disclosed that it had received an SEC subpoena in October 2020 for documents and information relating to the LBO and its accounting practices.

In January 2022, GWGH missed its payments of interest and principal due and owing to L Bond holders and announced the hiring of restructuring counsel. In February 2022, GWGH disclosed that it was unable to make the payments of the L Bonds within the grace period, and that it would notify L Bond holders if and when L Bonds would be able to make any future payments.

The L Bonds now lack value because of GWGH’s inability to service them.

The complaint filed in this action alleges that GWGH misrepresented its investment in Ben LP.

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If you purchased GWGH L Bonds directly in the LBO, you may move the Court no later than April 19, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased GWGH 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 info@frankcruzlaw.com, 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.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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