Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of GWG Holdings, Inc. (“GWG Holdings” or the “Company”) (NASDAQ: GWGH). The securities class action investigation concerns whether GWG Holdings violated federal securities laws.
INVESTORS OF GWG HOLDINGS WITH FINANCIAL LOSSES GREATER THAN $25,000 ARE ENCOURAGED TO COMPLETE KEHOE LAW FIRM’S SECURITIES CLASS ACTION QUESTIONNAIRE.
On January 18, 2022, GWG Holdings disclosed that “. . . the Company believes that the filing of its Annual Report on Form 10-K for the year ended December 31, 2021, will likely be later than the March 31, 2022 due date for such filing due to the recently disclosed decision of its independent registered public accounting firm to decline to stand for reappointment, which would also likely result in a voluntary suspension of the sale of L Bonds.”
The Company also reported that “. . . the Company 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,” and GWG Holdings “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%, closing at $5.65 per share on January 18, 2022.
Then, on January 27, 2022, The Wall Street Journal reported that GWG Holdings received a subpoena in 2020 from the SEC’s division of enforcement ordering GWG Holdings 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 “[t]hey 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, further injuring investors.