GWG Holdings, Inc.
| Company Name | GWG Holdings, Inc. |
| Stock Symbol | GWGH |
| Lead Plaintiff Motion Deadline | April 19, 2022 |
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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