Thousands of investors in GWG L Bonds—investments backed by life settlements—have lost significant value as the company struggled with financial problems and ultimately filed for bankruptcy in 2022. Since then, the company has suspended interest payments and halted redemptions of these high-risk bonds. Many of these investments were sold to retirees seeking safe, secure income.

Despite the fact that GWG Holdings bond recovery has ceased to make payments on the bonds, it is important to understand that there are still recovery paths for investors. The most promising option is to file a claim in FINRA arbitration against the brokerage firm or financial advisor that recommended these risky, unsuitable investments. These claims can be based on breach of fiduciary duty, negligence, misrepresentation, or failure to disclose.

Brokerage firms and financial advisors must carefully consider whether a recommended investment is suitable for a given customer, taking into account the investor’s age, time horizon, and financial profile. When these investments are recommended for older customers who may have limited time horizons and need access to their money, they must perform due diligence to ensure the products align with these investment objectives.

Legal Action for Bondholders: Working with Securities Attorneys

If you invested in GWG L Bonds, Iorio Law PLLC can help you file a claim in FINRA arbitration. We are aggressively pursuing GWG arbitration claims against brokerage firms and financial advisors that failed to disclose the substantial risks associated with these illiquid alternative investments. We can help you evaluate your investment losses, gather records, and file a claim within the relevant statute of limitations.