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

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

November 7, 2025
FINRA Suspends Former Wells Fargo Broker Over Unapproved Real Estate Venture

The Financial Industry Regulatory Authority (FINRA) suspended former Wells Fargo broker George J. Cairnes for four months and fined him $25,000 for engaging in unapproved real estate outside business activity, according to a settlement letter issued.

November 6, 2025
Former Ameriprise Broker Ordered to Pay $2.2 Million for Elder Exploitation

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Eric A. Dupre to pay nearly $2.2 million in damages to his former firm and two customers following allegations of theft and elder exploitation.

November 5, 2025
Former Wells Fargo Representative Suspended for Unauthorized Texting and Obstruction

The Financial Industry Regulatory Authority (FINRA) has suspended former Wells Fargo representative Eyan M. Townsend for one year and fined him $10,000 for using personal text messages to conduct business and attempting to obstruct an internal investigation by deleting those communications.