April14 , 2024

Notice to Emerson Equity Customers: GWG Investor Files $1.3 Million FINRA Arbitration Claim for GWG L Bond Losses


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Notice to Customers of Emerson Equity: KlaymanToskes Offers GWG L Bond Recovery Options

MINNEAPOLIS, MN, USA, February 14, 2024 /EINPresswire.com/ — National investment loss attorneys KlaymanToskes encourages customers of Emerson Equity who purchased GWG L Bonds, and suffered investment losses due to unsuitable investment advice, to contact the firm immediately at 888-997-9956.

KlaymanToskes reports the firm has filed a FINRA arbitration claim (no. 23-00043) against Emerson Equity, on the behalf of an investor who is seeking to recover up to $1,350,000 in investment losses, in connection with being recommended to invest in unsuitable, illiquid, and speculative GWG L Bond investments.

The customer is an unsophisticated investor that sought conservative and low risk investments that would provide income and minimal risk to his principal. While relying on his investments for income, the customer entrusted Emerson Equity with making recommendations that were in his best interest.

In April 2022, GWG Holdings, Inc. filed for bankruptcy, suspending their monthly dividends and leaving investors without access to their principal. In August 2023, the GWG L Bonds were canceled, and investors were issued “Interests” in the Wind Down Trust. The United States Bankruptcy Judge Marin Isgur recently announced that he continues “to believe that the [GWG] L Bondholders will lose a very large percentage of their investments.”

On October 13, 2023, the GWG Wind Down Trust sold two of its assets for approximately $10.5 million, representing less than 1% of the $1.3 billion owed to L Bondholders. The only remaining assets held by GWG’s Wind Down Trust are 4.6 million shares of common stock in FOXO Technologies, Inc. and 169.7 million shares of common stock in Beneficent. FOXO currently trades around $0.12 per share, while Beneficent is currently trading at around $0.41 per share.

KlaymanToskes’ investigation found that Emerson Equity, as the managing broker-dealer for GWG’s offering, ignored a multitude of red flags associated with GWG for several years, which rendered the L Bonds unsuitable and very high-risk, but especially for an investor seeking low risk, fixed income investments.

Additionally, Emerson Equity and its financial advisors had a conflict of interest in the sale of the L Bonds, as the firm and its representatives received a selling commission ranging from 0.75% to 5.00% of the principal amount of L Bonds sold, depending on the L Bonds’ maturity date, as well as other forms of compensation.

It is KlaymanToskes’ opinion that the L Bondholders will not likely obtain a significant recovery from the bankruptcy proceeding, and what they do receive will take significant time to recover. Accordingly, it is in L bondholders best legal interest to pursue FINRA arbitration claims against brokerage firms that sold this unsuitable product, such as Emerson Equity.

Customers of Emerson Equity who suffered investment losses due to unsuitable recommendations to invest in GWG L Bonds are encouraged to contact attorney Steven Toskes, Esq. at (888) 997-9956 or [email protected] for a free and confidential consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.


Lawrence L. Klayman, Esq.
KlaymanToskes, P.A.
+1 888-997-9956
[email protected]

Originally published at https://www.einpresswire.com/article/688580329/notice-to-emerson-equity-customers-gwg-investor-files-1-3-million-finra-arbitration-claim-for-gwg-l-bond-losses