Securities Arbitration Lawyer Blog
On April 2, 2025, the GWG Wind Down Trust filed its status report with the United States Bankruptcy Court for the Southern District of Texas, providing crucial updates for GWG L Bond investors. This report details the Trust’s activities for the quarter and year ending December 31, 2024, revealing that the Trust has sold nearly all its tangible assets, with only $3 million remaining. This blog post will analyze the implications for investors seeking recovery from GWG Holdings, Inc.’s bankruptcy.
As securities arbitration attorneys, Iorio Altamirano LLP has been actively investigating GWG L Bonds since 2021. Our firm is committed to helping investors understand their options and pursue the recovery of their investment losses. You can learn more about our GWG L Bond investigation here: https://www.iorioaltamirano.com/gwg-holdings-inc-s-l-bonds.html
GWG Wind Down Trust’s Asset Liquidation: Key Takeaways
Following GWG Holdings, Inc.’s Chapter 11 bankruptcy, the GWG Wind Down Trust was established to manage and liquidate the remaining assets. Here’s a breakdown of the Trust’s liquidation efforts:
- Life Insurance Policy Portfolio: Sold in 2023 for $10 million in cash.
- Foxo Technologies Inc. Stock: Liquidated for $586,942.
- Beneficient Stock (NASDAQ: BENF): The Trust sold 46,966 shares in 2023 and 1,866,694 shares in 2024, generating about $6.2 million. As of December 31, 2024, it held 248,026 BENF shares, valued at $184,780. By April 1, 2025, the value of these remaining shares had declined to around $73,912.
The Trust also settled an $8 million claim with Fifth Season Investments, LLC, fully paying this amount.
Current Financial Standing of the GWG Wind Down Trust
The GWG Wind Down Trust’s 2024 financial statements reveal that, with nearly all tangible assets sold, the Trust now holds approximately $3 million in net assets.
The Role of the GWG Litigation Trust in Investor Recovery
The only other asset owned by the Wind Down Trust is a beneficial interest in the GWG Litigation Trust. According to the status report, as of December 31, 2024, the GWG Wind Down Trust could not estimate the value of its interest in the Litigation Trust, net of attorney’s fees and collection costs.
However, a significant update emerged post-2024:
- The Litigation Trust has reached settlements totaling $91.3 million, pending court approval.
- Before fees, this amount represents about 5.6% of the $1.6 billion in GWG L Bonds that were outstanding when GWG filed for bankruptcy in April 2022.
For more details on this settlement, read our blog post: GWG Holdings L Bond Settlement: $50.5 Million Agreement Reached with Defendants Including Beneficient and Brad Heppner – What It Means for Investors.
What This Means for GWG L Bond Investors: Key Questions Answered
When Will Investors See a Distribution?
The GWG Wind Down Trust has not established a timeline for distributions to investors. Any payments are contingent on the Trust generating sufficient cash through asset sales or litigation proceeds. With only $3 million on hand, the Trust lacks the means to make a distribution.
As discussed above and outlined in our previous blog post, the GWG Litigation Trustee has agreed to settle various claims for approximately $91.3 million, pending court approval. The GWG Litigation Trustee has recently estimated that approximately $59.8 million will be distributed to the GWG Wind Down Trust after legal fees and expenses are paid. The $59.8 million in net settlement proceeds represent only about 3.69% of the $1.6 billion in outstanding GWG L Bonds at the time of GWG’s bankruptcy filing. Although the GWG L Bond Trustee has stated that it is too soon to determine how much each GWG L Bond investor will receive, if the GWG Litigation Trustee’s estimate is accurate and the entirety of the net proceeds were distributed to GWG L Bond investors, each investor would receive approximately $36.90 for every $1,000 they invested. The actual amount that GWG L Bondholders receive will depend on several factors, including court approval, fulfillment of conditions for certain settlements, the deduction of attorneys’ fees and expenses, and the resolution of several potentially large claims against GWG that are not yet resolved.
GWG L Bond Recovery: Understanding the Reality
It’s important for investors to understand the likely recovery scenario. Some brokers and advisors have led investors to believe they will recover most or all of their invested capital.
However, the GWG Litigation Trustee has cautioned against such assurances. In a January 2024 letter, the Trustee stated (emphasis added):
Over the past few months, numerous investors have reached out to me inquiring when they will receive their money back because their brokers have assured them they will receive all their money back. To be completely candid, I simply don’t understand how anyone can make any such assurances at this point in time.
To that end, I strongly encourage all GWG investors to consult their own independent counsel to discuss any potential claims they may have against any third parties who may have recommended this investment to them.
Your Best Option for GWG L Bond Recovery: FINRA Arbitration
Iorio Altamirano LLP has successfully recovered over $3 million for GWG L Bond investors through FINRA arbitration claims against brokerage firms. These claims are separate from the GWG Wind Down Trust’s efforts and focus on the liability of the brokerage firms that sold these speculative, high-risk, and illiquid products to retail investors. Given the Trust’s limited assets, we believe that pursuing FINRA arbitration presents the strongest opportunity for investors to recover their GWG L Bond losses.
Benefits of Pursuing FINRA Arbitration
- Proven results: We have a track record of recovering millions for our clients.
- Broker accountability: FINRA arbitration allows investors to hold brokerage firms accountable for misrepresentations and unsuitable investment recommendations.
- Contingency fees: We work on a contingency fee basis, meaning you don’t pay legal fees unless we recover money for you.
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
Iorio Altamirano LLP, based in New York, NY, is a leading securities arbitration law firm dedicated to representing investors nationwide. With over 20 years of experience and a strong track record of handling 1,000+ cases, we are committed to fighting for GWG L Bond investors on a contingency fee basis. You only pay if we recover for you.