GWG Holdings L Bond Settlement Update

A major settlement agreement of $50.5 million now offers hope to GWG Holdings L Bond investors who lost money in the company’s Chapter 11 bankruptcy. The settlement, reached on March 7, 2025, aims to help investors who bought L Bonds between June 3, 2020, and April 16, 2021.

These investors stand to recover about $31.48 per $1,000 unit before any deductions. The compensation will come from the defendants’ insurance companies after court approval through both a class action securities lawsuit and a bankruptcy case.

Our law firm, Haselkorn & Thibaut, has already helped clients recover GWG L Bond losses. We continue to fight for better outcomes through securities arbitration claims against the brokerage firms that sold these bonds. Contact Haselkorn & Thibaut toll-free at 1-888-994-8066 for a free consultation.

The GWG Litigation Trustee also pursues a separate $8.5 million settlement with accounting firm Whitley Penn. A key bar order hearing will take place on April 16, 2025, in Houston, Texas, to protect settling defendants from future claims.

The settlement includes an opt-out option that could end the deal if too many investors choose not to participate. This article explains what the settlement means for L Bond investors and the steps needed to claim compensation.

Key Takeaways

• GWG Holdings faces a $50.5 million settlement after filing Chapter 11 bankruptcy in April 2022, leaving investors with $1.3 billion in losses.
• Affected L Bond investors who bought between June 2020 and April 2021 can expect to receive $31.48 per $1,000 invested, roughly three cents per dollar.
• The settlement’s Bar Order hearing is scheduled for April 16, 2025, in Houston, Texas, with a March 6, 2025 deadline for investors to opt out.
• Investors have options beyond the settlement, including FINRA arbitration claims against brokers who sold these high-risk bonds without proper disclosure.
• The GWG Trust website serves as the main resource for investors to access court documents and stay updated on settlement developments.

Background on GWG Holdings

GWG Holdings sold L Bonds to investors through a network of brokers and financial advisors across the United States. The company filed for Chapter 11 bankruptcy protection in April 2022, which left many bondholders with significant losses on their investments.

Marketing of L Bonds

L Bonds drew thousands of investors through aggressive marketing campaigns that promised high yields backed by life insurance policies. Our team has found that these investment products created over $1.3 billion in debt for the company.

Many retirees became targets of sales pitches that highlighted attractive returns while downplaying serious risks.

Financial advisors promoted L Bonds as safe alternative investments to clients seeking better interest rates than traditional bonds or bank accounts. The marketing materials failed to properly explain how these high-yield bonds carried major risks tied to life insurance policies and settlements.

Securities regulators later questioned the sales tactics used to sell these complex financial products to everyday investors.

Chapter 11 bankruptcy filing

The marketing practices of L Bonds led to severe financial troubles for GWG Holdings. Our investigation shows the company filed for Chapter 11 bankruptcy on April 20, 2022. This filing came with a massive $1.3 billion debt tied to L Bond investments.

Many broker-dealers sold these high-yielding debt instruments to investors across the United States.

We found that thousands of investors, including retirees, lost significant money in this bankruptcy proceeding. The Securities and Exchange Commission had raised concerns about GWG’s business practices before the filing.

The company’s insolvency affected both small and large investors who bought these bonds through registered investment advisers. GWG’s financial troubles sparked several securities class actions from angry investors seeking to recover their principal investments.

Investor losses

After GWG Holdings filed for Chapter 11 bankruptcy, thousands of investors lost access to their invested money. Many retirees placed their life savings into L Bonds, hoping for stable returns on their investments.

We saw devastating losses spread across the investor community, with the total L Bond-related debt reaching over $1.3 billion.

Our investment fraud lawyers have met countless investors who face serious financial hardship due to these losses. L Bond investors received no interest payments since April 2021, causing major disruptions to their financial plans.

Investors can call

Many people bought these bonds through financial advisors who promised safe, high-yield investments. Instead, these illiquid investments left bondholders with little hope of recovering their principal investment amounts.

The $50. 5 million Settlement Agreement

The $50.5 million settlement offers GWG L Bond investors a chance to recover part of their losses through a structured payout plan. We want to help investors understand their rights under this agreement, including the opt-out options and Bar Order hearing details.

Key points of the settlement

GWG L Bond investors now face a major settlement agreement. Our team wants to share essential details about this crucial development.

• Insurance companies will pay $50.5 million to settle claims related to L Bond purchases made between June 3, 2020, and April 16, 2021.
• Investors can expect to receive $31.48 for each $1,000 unit of L Bonds before any fee deductions.
• Final recovery amounts to three cents per dollar invested in GWG L Bonds.
• Securities and Exchange Commission must approve this settlement before money gets distributed.
• A bar order hearing stands scheduled for April 16, 2025, to protect settling parties.
• Investors maintain rights to opt out of this settlement through clear deadlines.
• Financial Industry Regulatory Authority rules apply to all settlement distributions.
• Bond holders must submit valid claims to receive their share of the settlement.
• Court documents show this agreement resolves all claims against settling defendants.
• Settlement funds come directly from defendant insurers rather than GWG Holdings.

Opt-out clause and deadlines

L Bond investors need to understand their rights in the $50.5 million settlement agreement. Our team tracks the vital deadlines and requirements for opting out of this settlement.

• Investors must submit their opt-out requests before the set deadline to exclude themselves from the settlement terms.
• The settlement agreement includes a termination clause that gives Defendants power to end the deal if too many investors choose to opt out.
• A supplemental agreement dated March 6, 2025, lets Defendants cancel the settlement if exclusion requests exceed their comfort level.
• The Bar Order hearing takes place on April 16, 2025, to protect settling Defendants from future claims.
• The Securities and Exchange Commission requires clear documentation for all opt-out requests from L Bond holders.
• Investors who submit opt-out requests can change their minds and retract their exclusion to stay in the settlement.
• FINRA regulations ensure fair treatment of all L Bond investors during the settlement process.
• The settlement trustee monitors all opt-out requests to maintain proper documentation and compliance.
• The liquidation process affects the timing of payments to investors who stay in the settlement.
• Our litigation team helps investors evaluate their options between staying in or opting out of the settlement agreement.

Bar order hearing details

A critical bar order hearing will take place on April 16, 2025, at 2:30 PM in Houston, Texas. The civil suit aims to block third parties from making claims against settling Defendants.

Our legal team at InvestmentFraudLawyers.com stays ready to help investors understand the Securities and Exchange Commission (SEC) proceedings.

The bar order represents a vital step for the settlement’s finality. We track these court documents closely to protect our clients’ financial future through this process. The motion, filed on March 7, 2025, creates clear boundaries for future claims related to this securities case.

Implications for GWG L Bond Investors

GWG L Bond investors face limited recovery options through the settlement, with many seeking legal help to explore claims against their financial advisors – read on to learn more about your rights as an investor.

Limited recovery potential

We need to inform L Bond investors about the stark reality of recovery potential. The $50.5 million settlement falls far short of the $1.3 billion owed to investors, indicating a significant gap in potential returns.

Our analysis shows investors face modest recoveries after legal fees and settlement costs get deducted from the final amount.

L Bond investors must prepare for limited financial recovery in this settlement agreement. The math speaks clearly – the settlement represents less than 4% of the total amount owed to investors.

Financial Industry Regulatory Authority guidelines support our position that this settlement offers minimal compensation compared to the original investment amounts.

Next steps for investors

GWG L Bond investors face critical decisions about their investments right now. Our team guides investors through essential steps to protect their interests in this settlement process.

• Check your eligibility status for an Allowed Claim under GWG’s bankruptcy plan through the official GWG Trust website
• File required paperwork with FINRA to document your L Bond investments and losses
• Study the $50.5 million settlement agreement terms carefully to understand your potential recovery amount
• Mark your calendar for all settlement deadlines and bar order hearing dates
• Contact qualified legal counsel to review your specific case details and investment circumstances
• Gather all investment documents, including original purchase agreements and account statements
• Submit opt-out forms if you decide not to participate in the settlement agreement
• Document any communications with financial advisors about L Bond recommendations
• Track updates on the GWG Trust website about settlement progress and payment timing
• Calculate potential recovery amounts based on your total investment and loss figures
• Consider filing an individual claim if opting out of the class settlement makes sense for your situation
• Save copies of all claim forms and settlement-related correspondence for your records
• Register for official court notifications about important case developments and deadlines
• Research alternative recovery options through separate legal actions if needed

Services offered by Haselkorn & Thibaut

We help GWG L Bond investors recover their losses through legal action and FINRA arbitration – contact us now to learn more about your options.

Evaluation of potential claims

Our team assesses each GWG L Bond claim with precision to determine the best path for investor recovery. Through FINRA arbitration processes, we guide investors to understand their rights and options for seeking compensation.

Our expertise in GWG Holdings cases helps maximize potential settlements for affected bondholders.

Many L Bond investors face complex situations that need careful review by legal experts. Our investment fraud lawyers examine key factors like underwriting standards, bond issuance terms, and marketing materials to build strong cases.

Our firm’s deep knowledge of life settlements and alternative assets strengthens each claim evaluation.

Maximizing recovery for investors

Building on our claim evaluation process, we help investors recover their losses through proven strategies. Our track record shows over $3 million recovered for GWG L Bond investors through careful arbitration and legal action.

We pursue claims against brokers and financial advisors who sold these high-risk investments without proper disclosure.

The Financial Industry Regulatory Authority (FINRA) provides a path for investors to seek compensation. Each case goes through detailed investigation to build strong evidence of misconduct.

We guide investors step-by-step through arbitration hearings and settlement talks. Many brokers failed to explain the risks of L Bonds, which led to major financial losses for policyholders.

Important Dates

Investors must act fast as the GWG L Bond settlement deadlines approach, with the Bar Order hearing set for review in early 2024 – read more about this critical timeline to protect your investment rights.

Finalization of settlement and opt-out contingency agreements

We want to inform you about the GWG L Bond settlement agreement finalization date set for March 6, 2025. Our legal team understands the importance of meeting deadlines for opt-out requests and defendant notifications in this lawsuit.

The settlement includes a key contingency agreement that gives Defendants the right to end the settlement if too many class members choose to opt out.

Class members need to know their rights in this finra-regulated settlement process. The supplemental agreement offers flexibility for investors to change their minds. L Bond holders can withdraw their opt-out requests to stay in the settlement class if they decide that’s their best option.

This feature protects both the lead plaintiff and class members during the settlement process.

Bar order hearing date

After finalizing the settlement details, our legal team focuses on the crucial bar order hearing. The court has set a specific date of April 16, 2025, at 2:30 PM in Houston, Texas for this important proceeding.

The Financial Industry Regulatory Authority will monitor this hearing closely as it affects many L Bond investors. A motion was filed on March 7, 2025, to stop third parties from making claims against settling Defendants. This bar order stands as a key step to secure finality in the settlement process.

The hearing location at the Houston courthouse offers L Bond investors a chance to voice their concerns about the settlement terms.

Resources

Visit InvestmentFraudLawyers.com or call our attorneys to access court documents and stay informed about your L Bond investment. Want to learn more about the GWG Holdings L Bond Settlement?

Encouragement to visit GWG Trust website for updates

We urge all GWG L Bond investors to check with our firm regularly for critical updates on the bond settlement. The website serves as the main hub for accessing court documents and settlement information.

Our team monitors these updates closely to help investors stay current with the latest developments.

The Financial Industry Regulatory Authority recommends staying informed through official channels during such settlements. This helps protect investor interests and ensures no one misses important deadlines or announcements about their investments.

Access to court documents

Court documents for GWG Holdings’ bankruptcy proceedings stay open to the public through the Northern District of Texas Bankruptcy Court. Our team helps investors locate and understand these vital documents about L Bonds and the settlement agreement.

The Southern District of Texas Bankruptcy Court also maintains records related to this case.

These court documents give investors direct access to filings, motions, and official updates about the GWG Holdings situation. The Financial Industry Regulatory Authority (FINRA) encourages transparency in such proceedings.

Our next section covers important dates for the settlement process and opt-out deadlines.

Conclusion

The GWG L Bond settlement marks a crucial step for affected investors seeking recovery. Our team stands ready to help L Bond holders explore their legal options through FINRA arbitration claims.

The $50.5 million settlement provides a starting point, yet investors may find better results through individual claims against brokerage firms. Securities arbitration remains a strong path for maximizing potential recovery beyond the limited settlement amounts.

Many investors face tough choices about opting in or pursuing separate legal action before the deadlines pass. The GWG Trust website offers vital updates and resources for staying informed about settlement developments.

Take action now to protect your financial interests and explore all available paths to recovery.