NEW YORK, Oct. 21, 2025 (GLOBE NEWSWIRE) -- Altamirano PLLC continues to investigate investor losses tied to GWG L Bonds following the latest developments in GWG Holdings’ Chapter 11 bankruptcy and ongoing FINRA arbitration claims against the brokerage firms that recommended and sold the bonds.
On September 24, 2025, the United States District Court for the Northern District of Texas held a hearing on preliminary approval of a $50.5 million settlement related to GWG Holdings’ Director and Officer (D&O) Adversary Proceeding. The settlement also resolves claims brought in a related securities class action. The following day, the Court entered an order preliminarily approving the settlement, with a final fairness hearing scheduled for January 13, 2026.
According to court filings, the Litigation Trustee determined that further litigation against the insured defendants would be unlikely to produce a more favorable result for bondholders, given the risks, delays, and diminishing insurance coverage under the D&O policies. The settlement does not address the GWG Litigation Trust’s separate recovery efforts involving more than $140 million in additional claims, which remain ongoing.
Brokerage firms and financial advisors marketed the GWG L Bonds as safe, income-generating investments backed by life insurance portfolios. After GWG filed for bankruptcy in 2022, investors discovered the extent of firms’ due diligence failures, inadequate training, and other sales practice violations. Many brokerage firms recommended GWG L Bonds to customers without regard for suitability. Investors who wanted to earn income safely without risking their principal were left facing devastating losses.
Investment fraud lawyer Jorge Altamirano commented, “The settlement is an important step, but it underscores that GWG L Bond investors will recover only pennies on the dollar through the bankruptcy case. Meaningful recovery remains possible only by pursuing individual claims in FINRA arbitration against the brokerage firms that sold these bonds.”
Altamirano PLLC represents GWG investors nationwide in FINRA arbitration claims against brokerage firms and financial advisors who failed to properly vet GWG’s business model and the GWG L Bonds before recommending them to clients.
For more information, visit Altamirano PLLC’s GWG L Bonds Arbitration Awards hub or the firm’s GWG L Bonds Claims page, and contact the firm at (212) 220-6556 or jorge@altlawfirm.com for a free consultation.
Jorge Altamirano
Principal
Altamirano PLLC
One World Trade Center
85th Floor, Suite 51
New York, NY 10007
(212) 220-6556
jorge@altlawfirm.com
