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

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

February 6, 2026
Delaware Regulators Fine Kovack Advisors $985,000

Kovack Advisors Inc., the registered investment adviser affiliate of independent broker-dealer Kovack Securities Inc., agreed to pay a $985,000 fine to Delaware securities regulators.

February 5, 2026
FINRA Fines Broker-Dealer for Repeated Form CRS Disclosure Failures

The Financial Industry Regulatory Authority (FINRA) fined VSI Securities Inc., formerly known as Venecredit Securities Inc., $20,000 for failing to accurately disclose the firm’s disciplinary history in its customer relationship summary, known as Form CRS.

February 4, 2026
Investor Redemptions Rise in Nontraded BDCs Amid Credit Concerns

Financial advisors and their clients have increased redemptions from nontraded business development companies (BDCs) following a series of high-profile corporate bankruptcies, according to InvestmentNews. The surge highlights growing investor concern about liquidity and credit exposure within these high-yield but often risky investment ...