NEW YORK, Feb. 21, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against GWG Holdings, Inc. (NASDAQ: GWGH) and Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
GWG Holdings, Inc. (NASDAQ: GWGH)
On January 18, 2022, the Company 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 in 2020 from the Securities and Exchange Commission’s division of enforcement ordering the Company to produce documents. The paper also reported that an attorney who represents multiple L Bonds investors said that most of his clients are retail investors who bought the bonds after hearing a sales pitch that 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.”
On this news, GWG’s stock fell more than 20% during intraday trading on January 27, 2022, thereby further injuring investors.
For more information on the GWG investigation go to: https://bespc.com/cases/GWGH
Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC)
On February 15, 2022, Ericsson released a statement revealing that unusual expense claims in Iraq, dating back to 2018, had triggered a review that uncovered concerns about compliance with the company’s Code of Business Ethics.
Ericsson’s statement further disclosed that a subsequent investigation of the conduct of Ericsson employees, vendors and suppliers in Iraq during the period 2011-2019, found serious breaches of the Code of Business Ethics and other compliance rules, and identified evidence of corruption-related misconduct, including, making a monetary donation without a clear beneficiary; paying a supplier for work without a defined scope and documentation; using suppliers to make cash payments; funding inappropriate travel and expenses; and improper use of sales agents and consultants.
In addition, the investigation uncovered violations of Ericsson’s internal financial controls; conflicts of interest; non-compliance with tax laws; and obstruction of the investigation. It also identified payments to intermediaries and the use of alternate transport routes in connection with circumventing Iraqi Customs, at a time when terrorist organizations, including ISIS, controlled some transport routes. Payment schemes and cash transactions that potentially created the risk of money laundering were also identified.
On February 16, 2022, it was reported that Ericsson Chief Executive Borje Elkholm advised the Danish newspaper Dagens Industri that payments dating back to 2018 may have been made to purchase transportation routes “through areas that have been controlled by terrorist organizations, including ISIS.”
On this news, Ericsson’s stock fell $1.45, or 11.6%, to close at $11.01 per share on February 16, 2022, thereby injuring investors.
For more information on the Ericsson investigation go to: https://bespc.com/cases/ERIC
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
