GWG Investors Can Recover Their Losses

Bixby Law PLLC continues to pursue claims on behalf of GWG L Bond and GWG Preferred stock investors. It is increasingly clear that GWG investors are poised to recover mere pennies on the dollar from the GWG bankruptcy process. However, the brokerage firms or financial advisors who recommended investments in GWG may still be held accountable for unsuitable and inappropriate recommendations of GWG.

Bixby Law Managing Attorney Michael Bixby has tried numerous FINRA Arbitration claims relating to investments in GWG, and Bixby Law PLLC has recovered millions of dollars for investors who were inappropriately sold GWG, including the largest FINRA Arbitration punitive damages award relating to investments to GWG (as of early 2025). Michael Bixby has represented well over 1,000 investors in securities and investment fraud cases and has recovered over $150 million on behalf of investors.

FINRA itself as far back as 2014 referred to investments in GWG as “an illiquid and high-risk alternative investment.” Indeed, at least one FINRA Arbitration Panel, in awarding damages to the customer, noted that GWG was “not a suitable investment” for the customer “or perhaps anyone.” However, some financial advisors continued to describe investments in GWG as safer, more secure, or more conservative. Investors who were not willing to take speculative, aggressive, or high degrees of risk should not have been sold GWG.

In 2022, GWG defaulted on its bond payments and subsequently declared bankruptcy. However, the red flags abounded on GWG for years and a diligent financial advisor or professional should have and would have spotted these issues. The following timeline highlights just some of the significant red flags that should have alerted Financial Advisors and Brokerage Firms of issues with GWG:

• GWG had a history of net losses and has not generated sufficient operating and investing cash flows to fund its operations.
• For the year ended December 31, 2019, GWG posted a net loss from operations of $79.6 million and negative operating cash flow of $142.8 million.
• In its 2018 Q3 10-Q filing GWG disclosed to Defendant the impending write-down of its insurance portfolio.
• In December 2018 GWG revealed to Defendant that 70% of Beneficient’s assets were “goodwill.”
• In April 2019 GWG was unable to file its 2018 10-K filing.
• In April 2019 GWG wrote down its insurance portfolio by $84 million.
• In April 2019 GWG reported material weakness in internal controls.
• In April 2019 GWG discussed the restatement of financials for 2018.
• In May of 2019 sales of further L Bonds were suspended.
• In August 2019, GWG’s auditor resigned.
• In mid-August 2019 GWG delayed in filing quarterly financial statements for Q2 2019.
• In October 2020 GWG received a subpoena from the SEC, and the federal securities regulators began investigating GWG and delivered a subpoena requesting information from GWG. The SEC also asked for additional information regarding the L Bonds, accounting issues, and GWG’s consolidation of the business with Beneficent.
• In November 2020 GWG delayed in filing its 2020 Q3 Financials.
• In April 2021 GWG delayed in filing its financial statements for 2020.
• In mid-April 2021 GWG suspended its L bond offering.
• In May 2021 GWG delayed in filing financial statements for Q1 2021. In June 2021 GWG took an additional advance of $52.5 million.
• On August 1, 2021 GWG announced it would restate its financials for 2019 and part of 2020.
• In mid-August GWG took an additional advance of $107.6 million.
• In mid-August 2021 GWG delayed in filing financial statements for Q2 2021.
• In early September GWG amended its loan agreement with LNV corporation resulting in an additional advance of $30.3 million.
• In November 2021, GWG released its annual report with a warning of GWG’s “going concern.”
• In Mid-November 2021 GWG delayed in filing its financial statements for Q3 2021.
• In mid-December 2021 GWG took an additional advance of $60+ million.
• At the end of 2021, GWG’s auditor quit.
• In January 2022, GWG halted interest payments.
• In April 2022, GWG declared bankruptcy.

If you were sold GWG and any other illiquid, non-traded, or unsuitable investments, Bixby Law PLLC may be able to help you recover your losses. Bixby Law PLLC represents investors on a contingency fee basis. This means upfront costs are not charged and clients will only pay Bixby Law PLLC’s attorney’s fees and costs incurred out of the funds recovered on their behalf. For a free and confidential consultation, please fill out a contact form on our website or call (850) 332-6945 or send an email to Intake@BixbyLawFirm.com.