This case shows that panels are willing to award not only compensatory damages but also attorneys’ fees and costs where securities arbitration lawyers use applicable state consumer protection laws to maximize investor recovery. That makes it an especially notable result for investors pursuing GWG claims.

Even though GWG filed for bankruptcy, given the trustee’s projection that bondholders may recover only 2–3% of principal invested, investors can still pursue claims against the brokerage firms that sold the bonds. Arbitration panels have awarded compensatory damages, interest, attorneys’ fees, and costs in multiple cases, underscoring arbitration as a viable path to recovery.

The investors alleged breach of fiduciary duty, negligence and negligent misrepresentation, breach of contract, and failure to supervise. The claims focused on L Bonds issued by GWG and other illiquid products.

In August 2025, a FINRA arbitration panel ordered Arete Wealth Management, LLC to pay $280,000 in compensatory damages to an investor who purchased GWG L Bonds. The panel denied claims against individual brokers named in the case and also denied Arete’s counterclaim.

The investor alleged breach of fiduciary duty, negligence, gross negligence, negligent misrepresentation, negligent supervision, breach of contract, fraud, violations of federal securities law, including SEC Rule 10b-5, and violations of the North Carolina Securities Act.

The investor alleged violations of federal securities laws, California securities statutes, unfair business practices, fraud, breach of fiduciary duty, and negligence.