Sommerman, McCaffity, Quesada & Geisler urges coalition to assure protections for defrauded investors
DALLAS – Dallas-based GWG Holdings, Inc. (NASDAQ: GWGH), a nationwide marketer of financial products and investments, and two affiliated entities filed for bankruptcy protection on April 20 in the Southern District of Texas. Meanwhile, the company’s previous business practices and sales tactics remain under investigation by the U.S. Securities and Exchange Commission.
Recognizing the need to protect the interests of all bondholders, attorneys with Sommerman, McCaffity, Quesada & Geisler in Dallas are calling for the creation of a coalition of willing law firms, investors and bondholders to form a united front for the bankruptcy proceedings.
“GWG Holdings filed a bankruptcy and failed to provide disclosure concerning any specifics regarding holders of L-Bonds,” says firm partner Sean McCaffity. “We believe that more than $1.3 billion in bonds are currently being held by thousands of individual investors who may have viable claims against GWG and its management. It is essential that we form an investor-focused committee tasked with looking out for their interests in this case.”
The firm believes that it is essential that either an ad hoc committee of claimants or an unsecured creditors committee with bondholder representation be appointed or authorized to act as a watchdog in the bankruptcy proceedings to assure that financial losses are investigated and claims pursued where necessary and feasible.
“The holders of L Bond notes may have claims against GWG and its affiliated entities that could be impacted or otherwise adversely affected in the bankruptcy case, and we need to have a coordinated response,” says McCaffity.
Sommerman, McCaffity, Quesada & Geisler has a distinguished reputation for knowledgeable and assertive legal representation in complex commercial litigation involving business fraud, audit malpractice, director and officer liability, and fraudulent transfers.
To assist individual bondholders who may have questions about the latest developments, the firm has established a dedicated website with additional background, regular updates, and other information at www.gwglawsuit.com.