GWG Holdings, Inc. (L Bonds holders)

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) certain accounting issues that are subjects of the SEC investigation, including the consolidation for financial reporting purposes of The Beneficient Company Group L.P. by GWG Holdings, were a direct cause of GWG Holdings’ inability to timely file its 2020 Annual Report;
(ii) GWG Holdings’ missed deadline for filing of its 2020 Annual Report was the reason that GWG Holdings was forced to discontinue the L Bond Offering in April 2021;
(iii) the discontinuation of the L Bond Offering, in turn, had left GWG Holdings unable to fulfill its obligations to L Bond holders; and
(iv) Mr. Heppner defrauded GWG Holdings and investors in the L Bonds by engineering GWG Holdings’ capital-raising platform to enrich himself and his affiliated entities, in a scheme that would inevitably collapse.