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

I am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.

LATEST NEWS AND ARTICLES

September 11, 2025
Montana Federal Judge Allows Family's Premium Financing Claims to Proceed

A federal judge in Montana has allowed a family to move forward with negligence, fraud, and unjust enrichment claims tied to a premium-financed life insurance arrangement valued at $67.5 million.

September 10, 2025
Arizona Man Sentenced to 30 Years for Multi-Million Dollar Ponzi-Style Fraud

An Arizona man has been sentenced to 30 years in prison for running a Ponzi-style investment scheme that defrauded more than 100 victims out of millions of dollars, according to the U.S. Attorney’s Office for the District of New Mexico.

September 9, 2025
Easterly ROCMuni Fund's Steep Decline Spurs Potential Investor Lawsuits

The Easterly ROCMuni High Income Municipal Bond Fund (RMHIX) has suffered a dramatic collapse, losing nearly half its value in June and now trading at a net asset value (NAV) of $2.95 per share.