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GWG Holdings sold more than $1.6 billion in L Bonds to retail investors across the country. These unrated, illiquid securities were marketed as income-producing and “safe” but collapsed when GWG filed for Chapter 11 bankruptcy in April 2022. The Wind Down Trust now projects distributions of only 2–3% of principal invested, leaving bondholders with pennies on the dollar.
For investors, meaningful recovery has come not from the bankruptcy proceeding but through FINRA arbitration against the brokerage firms and brokers that sold these products.
Since 2023, arbitration panels have issued at least eleven awards tied to GWG L Bonds, with results ranging from $6,000 to over $1 million. This page summarizes those awards and what they mean for investors still considering their options.
Bankruptcy Trustee Context
The GWG Wind Down Trust continues to administer what remains of GWG Holdings after its April 2022 bankruptcy filing. The Trust has liquidated assets, pursued litigation tied to the Beneficient transactions, and negotiated several settlements with third parties. Despite those efforts, overall projected recovery for bondholders remains extremely low.
The trustee’s most recent projected cumulative distributions are only 2–3% of principal invested. That means GWG L Bonds recovery for investors is currently estimated at just 2-3% of principal.
Even with settlements totaling tens of millions of dollars, the scale of investor losses, more than $1.6 billion in L Bonds sold, means that bankruptcy distributions are only pennies on the dollar. For perspective, an investor who purchased $100,000 in L Bonds may receive between $2,694 and $3,446 from the Wind Down Trust.
The trustee has also noted that the timing of future distributions remains uncertain, depending on litigation outcomes and asset sales. For many retirees and conservative investors, waiting years for pennies on the dollar is not a meaningful recovery.
In June 2025, the litigation trust announced that it had reached settlements with several of GWG’s former professional advisers. A former law firm, one of GWG’s auditors, and directors’ liability insurers agreed to contribute payments, which were approved by the bankruptcy court. The proceeds will flow into the litigation trust to be distributed to creditors, though most bondholders are still projected to recover only pennies on the dollar. The trustee continues to pursue claims against other advisers as part of its effort to generate additional funds.
In August 2025, a group of bondholders filed a motion to remove Elizabeth Freeman as Wind Down Trustee, citing alleged conflicts of interest and breaches of fiduciary duty. The motion underscores ongoing disputes about the administration of the Wind Down Trust and adds to uncertainty about the timeline and governance of future distributions. For investors, it is another reminder that bankruptcy recoveries remain limited and unsettled, while arbitration has already produced tangible awards.
That contrast underscores the importance of FINRA arbitration. Arbitration awards have already delivered far more substantial results, including statutory interest, attorneys’ fees, and in rare cases, emotional distress damages.
For investors still holding losses, these cases show that meaningful recovery remains possible, but only by pursuing claims against the brokerage firms that sold GWG L Bonds.
September 2025 Update: Class Action and Settlement Proceedings
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. The settlement also resolved claims brought in a parallel class action. The following day, the Court entered an order preliminarily approving the settlement and directing notice to be sent to affected investors. A final fairness hearing is scheduled for January 13, 2026, where the Court will consider final approval and attorneys’ fees.
The proposed settlement stems from the Director and Officer (D&O) Adversary Proceeding, one of several actions brought by the GWG Litigation Trust to recover funds for investors. According to court filings, the Litigation Trustee agreed to the settlement given the litigation risks and delays associated with pursuing the action through trial, as the $50.5 million in available insurance proceeds represented the maximum likely recovery from the insured defendants. If approved, the D&O settlement would bring total gross recoveries for the Litigation Trust to approximately $91.3 million across all four settlements related to the D&O action. After fees, expenses, and replenishing the Litigation Trust reserve, the Trustee estimates that roughly $59.8 million will be available for distribution by the Wind Down Trust to Trust Interest Holders.
Before any distribution can be made, however, the District Court must grant final approval of the class action settlement, a two-step process that begins with preliminary approval and culminates with the January 2026 fairness hearing.
The settlement does not resolve or release the GWG Litigation Trust’s separate claims against trusts and other entities that allegedly received more than $140 million in improperly transferred funds from GWG. The Litigation Trustee has stated that those recovery efforts will continue.
GWG Arbitration Awards to Date
As of October 2025, investors have secured eleven separate FINRA arbitration awards tied to GWG L Bonds. Recoveries range from small individual claims to awards exceeding $1 million. Below is a running list of results, each linked to its full write-up.
GWG Arbitration Awards (2025)
- August 2025 – Arete Wealth Management – Arete Wealth Hit With $280K in Second GWG L Bonds Arbitration Award
Second arbitration award against Arete Wealth Management. The panel ordered $280,000 in compensatory damages to the investor but denied punitive damages and attorneys’ fees. - June 2025 – Lifemark Securities – Elderly Investor Awarded $75K in GWG L Bonds FINRA Arbitration
Panel found the bonds unsuitable for a retiree’s investment profile and awarded $75,000 in damages plus 8% annual interest. - May 2025 – Lifemark Securities – Investor Awarded $87K and Attorneys’ Fees in GWG L Bonds Arbitration
Award included compensatory damages, 9% interest, and attorneys’ fees under New York law. Panel found supervisory failures tied to the firm’s sale of GWG L Bonds.
GWG Arbitration Awards (2024)
- September 2024 – Ages Financial Services – Investors Awarded $1.08M, Emotional Distress in GWG Arbitration
Investors recovered over $1 million in damages, attorneys’ fees, and emotional distress awards under California and Arizona securities laws. - October 2024 – Pro Se Advisor – Pro Se Advisor Ordered to Pay $91K in GWG L Bonds Arbitration
A former advisor representing himself was held personally liable. The panel awarded damages, costs, and attorneys’ fees under Michigan statutes. - December 2024 – Florida Pro Se Advisor – Investor Awarded $6K in GWG L Bonds Arbitration in Florida
A smaller award showing that even low-dollar claims can result in recovery. The investor received damages and statutory interest under Florida law. - April 2024 – Greenberg Financial Group – Investor Awarded $70K and Attorneys’ Fees in GWG L Bonds FINRA Arbitration
Panel found the bonds “not suitable for anyone” and awarded damages, attorneys’ fees, and expert costs under Arizona law. - February 2024 – Arete Wealth Management – Arete Wealth Hit With $75K Award in GWG L Bonds Arbitration
Panel awarded compensatory damages and statutory interest under Missouri securities law.
Earlier GWG L Bonds Arbitration Awards (2023)
- November 2023 – Ages Financial Services – Investors Awarded $246K in GWG L Bonds Arbitration Against Ages
The panel’s explained decision found the investments unsuitable and overly concentrated, awarding 12% annual interest under state law. - October 2023 – Investor Awarded $1M in GWG L Bonds FINRA Arbitration
One of the largest awards to date. The panel found liability under federal securities laws, breach of fiduciary duty, and negligence. - May 2023 – Investor Awarded $43K in GWG L Bonds FINRA Arbitration Claims against the firm were dismissed, but the individual advisor was held liable for unsuitable GWG sales.
Key Themes Emerging from GWG Arbitration Awards
Looking across the awards, several consistent themes stand out in GWG L Bonds claims:
- Suitability Violations (FINRA Rule 2111): Panels repeatedly found GWG bonds unsuitable for retirees, conservative investors, and even “not suitable for anyone” in one case. See our Unsuitable Investments page for more on suitability standards.
- Supervisory Failures (FINRA Rule 3110): Many brokerage firms failed to monitor concentrations of GWG L Bonds in customer accounts and ignored red flags about product risks. Learn more on our Failure to Supervise page.
- State Securities Law Remedies: Panels have awarded attorneys’ fees under Florida, Arizona, Michigan, and New York securities statutes, boosting investor recoveries beyond damages alone. These statutes, often called “blue sky laws” provide powerful remedies for investors. See more on our Securities Violations page for details.
- Elderly and Vulnerable Investors: Panels highlighted the risks of selling complex, illiquid products to retirees and those needing liquidity, finding firms and advisors liable for the harm caused. See our Alternative Investments page for more on high-risk, illiquid products.
- Damages Range Widely: Awards have varied from small-dollar claims ($6,000 in Florida) to seven-figure recoveries ($1.08 million against Ages Financial Services). The range shows that panels are willing to give awards in both large and small cases.
- No Reliance on GWG Bankruptcy: Panels make clear that even though GWG itself is bankrupt, liability extends to the brokers and firms that recommended the bonds or approved their sale. See our Broker Negligence page for more on how brokers’ failures cause investor losses.
GWG L Bonds Arbitration: FAQs
How much have investors recovered so far in GWG arbitration?
As of October 2025, investors have secured at least eleven arbitration awards tied to GWG L Bonds. Recoveries have ranged from $6,000 to more than $1 million, with panels frequently awarding interest, costs, and in some cases attorneys’ fees.
Do arbitration panels ever award attorneys’ fees or interest?
Panels have awarded attorneys’ fees under Florida, Arizona, Michigan, and New York securities laws. Statutory interest has also been awarded, sometimes at rates as high as 12% per year. These remedies can significantly increase an investor’s recovery beyond compensatory damages.
How does arbitration recovery compare to the GWG bankruptcy?
The GWG Wind Down Trust has projected distributions of only 2–3% of principal invested. In contrast, arbitration awards have delivered far more meaningful recoveries. For example, an investor awarded $100,000 in damages with statutory interest may recover many times more than the pennies on the dollar projected in bankruptcy.
Can smaller investors bring claims?
Yes. FINRA arbitration allows both small and large investors to seek recovery. Awards have been made for as little as $6,000. Multiple investors of the same financial advisor may also pursue claims together.
Are brokerage firms still liable even though GWG is bankrupt?
Yes. GWG’s bankruptcy does not excuse brokerage firms from their duty to recommend suitable investments, supervise their brokers, provide adequate training, conduct adequate due diligence and explain risks to investors. Arbitration panels have consistently held firms and advisors liable for unsuitable sales of GWG L Bonds.
Can I still file a claim for GWG L Bonds losses?
In most cases, yes. Even though GWG filed for bankruptcy in 2022, investors can still pursue recovery through FINRA arbitration against the brokerage firms that sold the bonds.
While securities claims are subject to statutes of limitation and FINRA’s six-year eligibility rule (Rule 12206), arbitration panels have repeatedly rejected brokerage-firm arguments that investors waited too long or should have “protected themselves” by reading the GWG prospectuses.
These rulings underscore a simple point: the right to pursue GWG L Bonds recovery remains viable for many investors, but timing still matters. Acting promptly gives your attorney the best chance to preserve and assert your claims.
What were the different GWG L Bond offerings?
Since 2012, GWG Holdings conducted four separate L Bond offerings:
- Up to $250 million in L Bonds beginning January 2012
- Up to $1 billion in L Bonds beginning January 2015
- Up to $1 billion in L Bonds beginning December 2017
- Up to $2 billion in L Bonds beginning June 2020
L Bonds sold in the fourth offering carried two-, three-, five-, and seven-year terms and paid fixed interest rates between 5.50% and 8.50%, depending on the maturity. The minimum investment was $25,000. Typically, unless investors provided notice before maturity, the GWG L Bonds automatically renewed into new ones.
Contact Altamirano PLLC About GWG L Bond Claims Today
Altamirano PLLC represents investors nationwide in FINRA arbitration against brokerage firms that sold GWG L Bonds.
Our Principal, Jorge Altamirano, has handled more than 1,500 investor claims and recovered millions in losses for clients nationwide.
If you invested in GWG L Bonds and suffered losses, contact our firm today to discuss your options for recovery. Call (212) 220-6556 or email [email protected] to evaluate your situation.
We handle cases on a contingency basis. You do not owe a legal fee unless we recover for you. Securities arbitration claims are time-sensitive. Harmed investors should act now to preserve their rights.
