L Bond Investment Loss Lawyer

For GWG L Bond Investors, Pursuing Damages From Broker-Dealers May Be Best Chance of Getting Their Money Back 

Plan To Sell BENF Shares Could Result in 10 or 20 Cents on The Dollar for Bondholders 

If you are one of 27,000 GWG L Bond investors hoping to recover your losses through a class action securities fraud lawsuit or the ongoing bankruptcy proceedings against GWG Holdings L Bonds, the time to explore other legal options with a seasoned L Bond Investment Loss Lawyer is now. GWG is accused of operating an alleged more than $1.6B Ponzi scam. Its chairman Brad Heppner, who is also The Beneficient Company Group founder, is accused of running this purported multi-year fraud.

On June 21, 2023, a US bankruptcy court approved a motion allowing debtors to sell GWG Stock from the bondholders’ trust. Currently, according to SLCG Economic Consulting Owner Craig McCann, the trust holds at least 142.8 million Beneficient (BENF) shares. This is an amount that is expected to increase to around 155 million 165 million BENF shares after the conversion of some preferred shares over the next couple of weeks. While this may sound like good news for GWG bondholders in terms of getting their money back from the sale of these shares, that is very far from reality.

Considering that BENF shares may purportedly be close to worthless, said Craig McCann in an article he authored, such a sale by the trust will drive its price further down, and “the trust will likely recover $1 or less per BENF share or roughly what it may recover from future litigation settlements. This implies GWG bondholders will receive 10 or 20 cents on the dollar spread out over many years in the future.”

Why File Your Own GWG L Bond Loss Claim for Damages?

While it may have seemed like waiting for the outcome of these bankruptcy proceedings—which could take years—or seeing how class action litigation against GWG Holdings pans out—may be the easiest way to get your money back, that is far from the case. Even with these class action lawsuits—and with so many plaintiffs involved—financial recovery of anything significant is unlikely.

However, if your broker-dealer unsuitably recommended GWG L Bonds to you, misrepresented and omitted the risks, overconcentrated your account with these investments, was negligent, or engaged in some other type of misconduct related to the marketing and sale of these high-yield bonds, you may be able to sue them. This could maximize your chances for a full financial recovery.

Shepherd Smith Edwards and Kantas (investorlawyers.com) represent L Bond investors against the many broker-dealers that allegedly unsuitably marketed and sold these high-risk junk bonds. Already, we have filed a number of broker fraud lawsuits pursuing damages for investors.

It is unfortunate that so many broker-dealers appear to have disregarded their duty to serve their customers’ best interests and allegedly unsuitably sold GWG L Bonds to retail investors, including many seniors and retirees. These investors are now saying that not only were they blindsided by huge losses, but also they had no idea they were investing in such high-risk investments that were inappropriate for them from the start. They also thought they were purchasing private placements used to purchase life insurance policies on the secondary market and were never notified that in 2018 the company stopped investing in these policies and was now investing in Beneficient.

Why You Need an L Bond Investment Loss Lawyer By Your Side 

For this type of investor loss claim, you want to work with a seasoned L Bond Investment Loss Lawyer that understands why these investments failed, knows how to determine exactly why your financial advisor should be held liable, have the experience to take on this type of broker fraud lawsuit, and can provide you with solid securities law representation while protecting your rights.  For more than 30 years, Shepherd Smith Edwards and Kantas have fought for investors in mediation, litigation, and arbitration, including against the largest Wall Street Firms.  More than 90% of our clients have received full or partial financial recovery with our help.

How To Contact an SSEK L Bond Investment Loss Lawyer:

To schedule your free, no-obligation case consultation, call (800) 259-9010 or contact us online.