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

GWG Bondholders Offered Settlement Worth Just Cents on the Dollar

Posted on April 16th, 2025 at 11:44 AM
GWG Bondholders Offered Settlement Worth Just Cents on the Dollar

From the desk of Jim Eccleston at Eccleston Law

Distressed investors who purchased $1.6 billion in GWG L bonds may soon receive a small fraction of their original investment under a proposed settlement. InvestmentNews reports that Beneficient, a platform for illiquid alternative investments formerly affiliated with GWG Holdings Inc., has offered $50.5 million to settle lawsuits tied to GWG’s collapse.

GWG filed for Chapter 11 bankruptcy in April 2022. Before that, around 40 broker-dealers sold investors the GWG L bonds in $1,000 units, marketing them as being backed by life settlements. Beneficient, which spun off from GWG shortly before the bankruptcy, now seeks to resolve claims stemming from federal lawsuits, including those consolidated in GWG’s bankruptcy proceeding.

Michael Goldberg, the trustee of the GWG Litigation Trust, submitted the proposed resolution, which includes liability releases for certain former GWG executives. InvestmentNews reports that Goldberg had previously accused them of “corporate looting.”

The proposed settlement underscores the severe losses bondholders face and leaves the door open for continued arbitration against broker-dealers who sold the now nearly worthless investments.

 

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

If you find yourself in trouble with the regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

1789155492 Law
September 11, 2026
SEC Considers Investor Test to Expand Accredited Investor Eligibility

The Securities and Exchange (SEC) Chairman Paul S.

1789059399 Law
September 10, 2026
Advisors Emphasize Early Planning as Key Defense Against Elder Financial Exploitation

Elder financial exploitation has reached crisis levels, according to InvestmentNews.

1789059201 Law
September 10, 2026
FINRA Arbitration Panel Awards $509,000 in Suit Over Conservation Easement Investments

InvestmentNews reports that a three-person arbitration panel under the aegis of Financial Industry Regulatory Authority (FINRA) Dispute Resolution Services awarded $509,000 in damages to clients of Strategic Financial Alliance Inc.