{"id":3018,"date":"2025-11-27T16:42:26","date_gmt":"2025-11-27T16:42:26","guid":{"rendered":"https:\/\/wealthylifestyle.online\/?p=3018"},"modified":"2025-11-27T16:42:26","modified_gmt":"2025-11-27T16:42:26","slug":"gwg-holdings-50-95m-l-bond-securities-settlement","status":"publish","type":"post","link":"https:\/\/nerdwallett.xyz\/?p=3018","title":{"rendered":"GWG Holdings $50.95M L Bond Securities Settlement"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Investors who purchased or acquired L Bonds issued by GWG Holdings Inc. between June 3, 2020, and April 16, 2021, may be eligible to receive a cash payment from a&nbsp;<a href=\"https:\/\/www.claimdepot.com\/settlements\" target=\"_blank\" rel=\"noreferrer noopener\">class action settlement<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">GWG Holdings Inc., its former officers and directors, The Beneficient Co. Group L.P. and its former auditor Whitley Penn LLP agreed to pay $50,950,000 to resolve a securities class action lawsuit. The lawsuit alleged GWG and related defendants violated federal securities laws by making false or misleading statements in the June 3, 2020, registration statement for L Bonds, including misrepresentations about Ben\u2019s business model, financial performance and other key information.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Who are the class members?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Class members must meet all of the following criteria:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They purchased or otherwise acquired L Bonds issued by GWG Holdings Inc.<\/li>\n\n\n\n<li>They made the purchase or acquisition pursuant and\/or traceable to the registration statement declared effective on June 3, 2020.<\/li>\n\n\n\n<li>Their transaction occurred between June 3, 2020, and April 16, 2021, inclusive.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This includes both direct and indirect holders of L Bonds, such as those who held their investments through brokers or custodians. The settlement administrator compiled a comprehensive list of potential class members using records from the GWG Wind Down Trust, subscription agreements and broker-provided lists.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Holders of Series A1 Interest in the Wind Down Trust are also eligible for a payment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How much can class members receive?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The total settlement fund is $50,950,000. The actual amount each class member will receive depends on several factors, including the total number of valid claims, the net settlement fund after deductions and the amount of L Bonds each class member purchased or acquired during the class period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The estimated average recovery before deductions is $31.48 per $1,000 unit of L Bonds. This estimate is based on the total principal amount of GWG\u2019s public L Bond debt as of the bankruptcy filing date. However, the final amount may be higher or lower.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">No action needed to receive compensation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Eligible class members&nbsp;<strong>do not<\/strong>&nbsp;need to file a claim. The trustee will distribute payments to eligible class members based on the records on file.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The settlement administrator may request additional information to confirm their eligibility or transaction history.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those who believe they are a class member but did not receive notice should contact the settlement administrator to verify their status and ensure their information is up to date.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">$50.95 million settlement fund breakdown<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The $50,950,000 settlement fund includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Settlement administration costs<\/strong>: To be determined<\/li>\n\n\n\n<li><strong>Attorneys\u2019 fees<\/strong>: Up to $8,619,000<\/li>\n\n\n\n<li><strong>Attorneys\u2019 expenses<\/strong>: Up to $500,000<\/li>\n\n\n\n<li><strong>Payments to eligible class members<\/strong>: Remainder of the net settlement fund<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Important dates<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Fairness hearing<\/strong>: Jan. 13, 2026<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">When is the GWG Holdings Inc. securities litigation payout date?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The settlement administrator will issue payments after the court grants final approval of the settlement and resolves any appeals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why is there a class action settlement?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The class action lawsuit alleged that GWG Holdings Inc. and related defendants violated federal securities laws by making false or misleading statements in the June 3, 2020, registration statement for L Bonds. Investors claimed the defendants misled them about Ben\u2019s business model, financial performance and other key aspects of the offering.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The defendants denied all allegations but agreed to settle to avoid the uncertainty, burden and expense of further litigation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sources<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><a href=\"https:\/\/gwgholdingstrust.com\/wp-content\/uploads\/2025\/10\/Class-Notice-booklet.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Class notice<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/gwgholdingstrust.com\/wp-content\/uploads\/2025\/10\/GWG-Defendants-Settlement-Agreement.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">GWG settlement agreement<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/gwgholdingstrust.com\/wp-content\/uploads\/2025\/10\/Whitley-Penn-Settlement-Agreement.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Whitley Penn settlement agreement<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/gwgholdingstrust.com\/securities-class-action\/\" target=\"_blank\" rel=\"noreferrer noopener\">Settlement website<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Investors who purchased or acquired L Bonds issued by GWG Holdings Inc. between June 3, 2020, and April<\/p>\n","protected":false},"author":1,"featured_media":3019,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3018","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-class-action-settlements"],"_links":{"self":[{"href":"https:\/\/nerdwallett.xyz\/index.php?rest_route=\/wp\/v2\/posts\/3018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nerdwallett.xyz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nerdwallett.xyz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nerdwallett.xyz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nerdwallett.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3018"}],"version-history":[{"count":0,"href":"https:\/\/nerdwallett.xyz\/index.php?rest_route=\/wp\/v2\/posts\/3018\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nerdwallett.xyz\/index.php?rest_route=\/wp\/v2\/media\/3019"}],"wp:attachment":[{"href":"https:\/\/nerdwallett.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nerdwallett.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nerdwallett.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}