GWG Investor Files Lawsuit Against Newbridge Securities

BOCA RATON, Fla. - April 25, 2022 - PRLog -- Securities law firm, Soreide Law Group, is representing an investor from Hollywood, Florida in a securities arbitration claim before the Financial Industry Regulatory Authority or "FINRA" for losses sustained in GWG Holdings L bonds after they announced they filed for chapter 11 bankruptcy protection last week. As a result of the Chapter 11 bankruptcy filing, the payment obligations of GWG are stayed, which means that GWG L Bond investors will not receive any principal or interest payments until GWG Holdings, Inc. restructures its debt obligations and the court approves the distributions. Chapter 11 Bankruptcy cases can take up to five years for complex cases to complete. This means that many retirees that were sold these bonds by Newbridge Securities Corporation and other broker dealers that were relying on the income will now receive nothing and there is no market for the bonds to sell them to anyone rendering them for the time being effectively worthless.

The GWG L Bonds came under pressure after GWG Holdings defaulted on its obligation to bondholders missing interest and principal payments on January 15, 2022. The company was reportedly seeking rescue financing to avoid bankruptcy after facing accounting issues, financial stress, and an alleged SEC investigation. GWG's L Bonds are speculative, high-risk, and illiquid securities sold as private placement offerings by brokerage firms across the country. The L Bonds were likely not suitable for investors with a low-risk tolerance or investors who had liquidity needs.

The client, represented by Lars Soreide, Esq., is from Hollywood, Florida and used Newbridge Securities broker John Zaffarano who allegedly did not inform the Claimant that the GWG Holdings bonds were high risk and concentrated almost 100% of the 85 year old Claimant's money at Newbridge into the GWG bonds. The Claimant, a retired factory foreman, was using the GWG L bond payments to support his day to day living expenses and now has to rely on family to pay for his living expenses after the GWG bankruptcy was announced. The Claimant may potentially lose $185,000 of his life savings in GWG. The FINRA case no. is 22-00869 and is being processed out of FINRA'S Boca Raton office. The claims made by the Claimant include common law negligence, breach of fiduciary duty, negligent supervision on behalf of Newbridge Securities Corporation and claims under the Florida Investor Protection act §517 requesting treble damages and attorney's fees and costs. Newbridge Securities Corporation and Zaffarano have yet to file a response to the lawsuit but it is anticipated they will deny all wrongdoing.

Soreide Law Group has been contacted by other Newbridge Securities customers who were also sold GWG bonds and Soreide Law Group anticipates filing many more FINRA arbitrations against Newbridge Securities and many other investment firms who sold GWG to their customers.

If you were a customer of Newbridge Securities Corporation or any brokerage firm that has loses in GWG bonds call Soreide Law Group today at (954) 760-6552 or Nationally at (888) 760-6552. We represent investors NATIONWIDE on a contingency fee basis and there is no fee if no recovery. For more information on Soreide Law Group please visit https://www.SecuritiesLawyer.com