Top Seller of GWG L Bonds, Emerson Equity, Sues Insurers after Investors file Claims 

According to an article in Investment News this week, California broker-dealer Emerson Equity has filed a lawsuit against a network of insurers over a $5 million dispute involving GWG L Bond investors’ claims. Emerson Equity, reportedly a top seller of GWG L Bonds, has been hit with numerous claims after GWG Holdings filed for bankruptcy on April 20 of this year. 

Emerson Equity first filed suit in September in California state court, but later refiled in U.S. District Court in San Francisco on October 13, 2022, according to Investment News. The lawsuit reportedly alleges breach of contract in connection with a policy providing a limit of $5 million of liability coverage, and the article speculates that disputes between broker-dealers and insurance carriers typically occur when insurers deny coverage.  

After GWG Holdings failed to make interest payments to investors in January and February of this year, the company filed for Chapter 11 bankruptcy protection. The company has sold more than $1.6 billion in offerings backed by life insurance settlements through numerous broker dealers. The case is ongoing and investors are still questioning if and when they will get any money back. For more information see: 

GWG Holdings * GWG L Bonds * Investor Lawsuits for Recovery 

Potential Lawsuits to Recover Financial Losses  

The White Law Group continues to investigate potential claims against the broker dealers that sold high risk GWG L Bonds to investors. The high commission structure of these products leads to the possibility that unscrupulous financial advisors will push these products unsuitably to maximize their own commissions.  

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be appropriate in light of the investor’s age, risk tolerance, net worth, and investment experience. Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim.  

If you have suffered losses in GWG L Bonds and Emerson Equity and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.  

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and
Seattle, Washington. To learn more about The White Law Group visit www.whitesecuritieslaw.com.  

 To learn more about the White Law Group claims filed to recover Investment losses, please see: 

FINRA Lawsuit filed against Emerson Equity LLC involving $2.5 Million in GWG Bonds