NEW YORK, April 11, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of GWG Holdings, Inc. (NASDAQ:GWGH), TaskUs, Inc. (NASDAQ:TASK), Gatos Silver, Inc. (NYSE:GATO), and MP Materials Corp. (NYSE:MP). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
GWG Holdings, Inc. (NASDAQ:GWGH)
Class Period: June 3, 2020 Bond Offering
Lead Plaintiff Deadline: April 19, 2022
On January 18, 2022, GWG disclosed that its Annual Report will likely be filed “later than the March 31, 2022 due date” because of “the recently disclosed decision of its independent registered public accounting firm to decline to stand for reappointment.” The Company further disclosed that it “did not make the January 15, 2022 interest payment of approximately $10.35 million and principal payments of approximately $3.25 million with respect to its L Bonds” product and that it elected to “voluntarily suspend its L Bonds sales effective as of January 10, 2022.” On this news, GWG’s stock price fell $2.17 per share, or 27.7%, to close at $5.65 per share on January 18, 2022.
Then, on January 27, 2022, The Wall Street Journal reported that GWG received a subpoena from the Securities and Exchange Commission requesting documents. The article also stated that an attorney representing multiple L Bonds investors said his clients are retail investors who bought the bonds after hearing the products were safe and would offer a comfortable income stream for their retirement, but that “they were shocked to learn that their money was used to pay old investors while the company has been under SEC investigation.”
Following this news, GWG’s stock dropped over 20% during intraday trading on January 27, 2022.
For more information on the GWG class action go to:
