UPDATE (4/20/22): According to the Wall Street Journal, asset manager GWG files for bankruptcy as their risky bond sales dry up.
Vernon Litigation Group, based in Naples, Florida is representing investors with holdings in GWG L Bonds. GWG issued more than $13 Billion dollars in high yield L bonds sold through independent broker-dealers. In January, GWG announced that it was pausing income payments to bond holders and freezing redemptions. Investors now face an uncertain future for this investment.
NASD Notice to Members 04-30 governs the sale of bonds and bond funds such as GWG’s L Bonds. FINRA members are obligated to conduct the following steps when selling such bonds to investors:
- Understand the terms, conditions, risks, and rewards of bonds and bond funds they sell (performing a reasonable-basis suitability analysis);
- Making certain that a particular bond or bond fund is appropriate for a particular customer before recommending it to that customer (performing a customer-specific suitability analysis).
- Provide a balanced disclosure of the risks, costs, and rewards associated with a particular bond or bond fund, especially when selling to retail investors.
- Adequately train and supervise employees who sell bonds and bond funds.
Our clients have suffered significant damages because of sales deficiencies laid out in NTM 04-30. Had our clients been provided balanced disclosures by adequately trained brokers, the investments into GWG’s L Bonds could have been avoided. If you or one of your loved ones was sold GWG L Bonds, you may be entitled to a financial recovery. One of our securities arbitration and litigation claims attorneys will happily provide you with a free overview of any potential claims you may have.
For more information, contact Vernon Litigation Group by phone at 239-649-5390 or by e-mail at info@vernonlitigation.com to speak with a representative of Vernon Litigation Group.