Tr?id=566623520170033&ev=PageView&noscript=1

Federal Judge Approves $91.3 Million in GWG Holdings Bankruptcy Settlements

Posted on July 21st, 2025 at 9:22 AM
Federal Judge Approves $91.3 Million in GWG Holdings Bankruptcy Settlements

A federal bankruptcy judge in Houston has approved $91.3 million in settlements from several professional firms, company founders, and former executives tied to the collapse of GWG Holdings Inc. As reported by InvestmentNews, U.S. Bankruptcy Judge
Christopher Lopez signed off on the agreements as part of the ongoing Chapter 11 case. The approvals included a $30 million settlement from Mayer Brown, GWG’s former legal counsel, resolving claims that the firm failed to provide proper legal advice and maintained undisclosed conflicts of interest. Mayer Brown agreed to settle without admitting liability.

Texas-based accounting firm Whitley Penn reached an $8.5 million settlement over allegations of audit malpractice involving its work for GWG. Claims centered on the firm’s handling of related-party disclosures and valuation issues, as well as its role in accounting decisions tied to GWG’s complex dealings with Beneficient, a financial services firm specializing in alternative assets. Like Mayer Brown, Whitley Penn admitted no wrongdoing.

Former GWG founders Jon R. and Steven F. Sabes also agreed to a $2.3 million settlement. Additionally, a $50.5 million agreement with GWG’s former directors and officers, announced in March, received final court approval. Michael Goldberg, trustee for the GWG Litigation Trust, is overseeing efforts to recover funds for creditors. Before filing for bankruptcy in 2022, GWG raised approximately $1.6 billion in so-called L Bonds, securities backed by life settlements, sold to retail investors through dozens of broker-dealers.

InvestmentNews reports that the settlements will fund the litigation trust’s recovery efforts for bondholders and other creditors impacted by GWG’s bankruptcy.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

That is just fantastic! Thank you very much!

Julie N.

LATEST NEWS AND ARTICLES

1773930497 Law
March 19, 2026
Stifel Faces Proposed ERISA Class Action Over 401(k) Fund Performance

According to ThinkAdvisor, Stifel Financial now faces a proposed class action lawsuit that accuses the firm of mismanaging its profit sharing 401(k) retirement plan in violation of the Employee Retirement Income Security Act (ERISA).

1773851287 Law
March 18, 2026
LPL and Ameriprise Notify Clients of Cybersecurity Incidents Involving Account Access

LPL Financial and Ameriprise Financial Services recently notified certain clients about separate cybersecurity incidents that exposed private information and, in one case, led to unauthorized trading activity.

1773760408 Law
March 17, 2026
Bankruptcy Court Orders Emerson Equity to Produce Records in Inspired Healthcare Case

A federal bankruptcy court in Fort Worth has ordered Emerson Equity to produce documents connected to the sale of private securities issued by Inspired Healthcare Capital, according to InvestmentNews.