Securities Arbitration Lawyer Blog
Background:
- GWG Holdings, Inc. (“GWG”) filed for Chapter 11 bankruptcy protection on April 20, 2022.
- GWG’s Chapter 11 bankruptcy plan (the “Plan”) went into effect on August 1, 2023. As part of the Plan, GWG’s assets were liquidated through the GWG Wind Down Trust.
- As of December 31, 2024, the GWG Wind Down Trust had sold nearly all its tangible assets and had only $3 million in net assets. Read more about the GWG Wind Down Trust’s latest Status Report: GWG L Bonds Update: Investor Recovery Outlook and Wind Down Trust Report (April 2025).
- The Plan also established a GWG Litigation Trust, tasked with investigating and prosecuting potential claims against third parties who may have contributed to GWG’s failure.
- In March 2025, the GWG Litigation Trust announced proposed settlements with various defendants totaling $91.3 million. The settlements are subject to court approval. Read more about the GWG Litigation Trust’s settlements: GWG Holdings L Bond Settlement: $50.5 Million Agreement Reached with Defendants Including Beneficient and Brad Heppner – What It Means for Investors.
How Much Will GWG L Bond Investors Receive from the Bankruptcy Settlements?
On April 30, 2025, the GWG Litigation Trustee filed a Supplemental Notice of Proposed Settlements in the United States Bankruptcy Court for the Southern District of Texas.
According to the court filing, after deducting legal fees and expenses, approximately $59.8 million of the $91.3 million will be available for distribution, assuming court approvals. The GWG Wind Down Trust estimates that the cumulative distribution from the four settlements will be between $2.694% and 3.446% of the approximate $1.67 billion in pre-petition GWG L Bond holdings that are now Series A1 WDT Interests.
In Plain English:
- At the time of GWG’s bankruptcy filing in April 2022, GWG owed approximately $1.67 billion to L Bondholders.
- The four announced settlements, which still require court approval, will generate approximately $59.8 million for the GWG Wind Down Trust.
- Of that amount, GWG L Bond investors will likely receive between 2.7% and 3.45% of their original investment.
- In other words, investors can expect to receive approximately $26.94 to $34.46 for every $1,000 invested.
Can GWG L Bond investors recover additional investment losses?
Yes. In addition to the bankruptcy liquidation, GWG L Bond investors may be able to recover further losses by filing claims against the brokerage firms that sold these high-risk, speculative, and illiquid securities. These firms, which earned high commissions from the sales, had legal duties to their customers.
Iorio Altamirano LLP has already recovered approximately $3 million for GWG L Bond investors. We believe that pursuing recovery from the financial firms that marketed and sold these risky products remains the strongest avenue for investors to recoup their losses.
Take Action: Contact Iorio Altamirano LLP for a Free Consultation
If you invested in GWG L Bonds, we encourage you to contact Iorio Altamirano LLP today for a free, no-obligation consultation to discuss your legal rights and recovery options.
You can reach our securities arbitration lawyers:
- August Iorio: august@ia-law.com
- Jorge Altamirano: jorge@ia-law.com
- Call us toll-free: (855) 430-4010
For more information on our GWG L Bonds investigation and to view our panel discussion videos, please visit gwglawyer.com.
About Iorio Altamirano LLP
Based in New York, NY, Iorio Altamirano LLP is a leading securities arbitration law firm dedicated to representing investors nationwide. With over 20 years of experience and a proven track record in handling more than 1,000 cases, we are committed to fighting for GWG L Bond investors on a contingency fee basis—you only pay if we recover money for you.