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

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

August 14, 2025
Florida Investment Advisor Accused of Orchestrating $94 Million Fraud Targeting International Clients

Federal prosecutors have charged Andrew Hamilton Jacobus, a former investment adviser based in Fort Lauderdale, Florida, with defrauding international investors of over $94 million over 20 years.

August 13, 2025
FINRA Suspends Financial Advisor for Outsourcing Continuing Education Requirements

The Financial Industry Regulatory Authority (FINRA) has suspended advisor Francis G. Smith for one month and fined him $5,000 after finding he had someone else complete required continuing education (CE) coursework on his behalf.

August 12, 2025
Margin Debt Hits $1 Trillion as Investor Risk Appetite Surges

According to Barron’s, investors are borrowing against their portfolios at record levels.