GWG Holdings, Inc. Files for Bankruptcy – GWG L Bond Holders Urged to Take Immediate Action

April 21, 2022

GWG L Bond investors are encouraged to contact Kaplan Rothstein Prüss Peraza, P.A., a nationally recognized securities arbitration law firm, to submit FINRA arbitration claims to recoup investment liabilities.

NEW YORK–(BUSINESS WIRE)– GWG Holdings, Inc. petitioned for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas on April 20, 2022. The bankruptcy case is potentially catastrophic for GWG L Bondholders and casts severe uncertainty on whether investors will recoup their principal investment. Kaplan Rothstein Prüss Peraza, P.A. is investigating potential claims against the brokerage firms that sold the GWG L Bonds. KRP2 offers free consultations to investors to assess their prospective claims.

According to filings, GWG had more than $2 billion in overall liabilities and approximately $1.55 billion in L Bonds outstanding at the time of its bankruptcy filing. The GWG Wind Down Trust’s Q4 2025 Joint Status Report confirms that pending and approved settlements are estimated to yield a total distribution of approximately 3.78% to former GWG bondholders, meaning investors may recover roughly $3.78 for every $100 invested directly from the bankruptcy process. FINRA data shows that in cases closed in 2024, approximately 70% of customer arbitration claims resulted in settlements reached by the parties, underscoring why a FINRA arbitration claim against the brokerage firm that sold the bonds may represent a more meaningful path to recovery than the bankruptcy proceedings alone.

L Bond holders may be able to recover their losses through a FINRA arbitration claim against the brokerage firms that sold the bonds. 

What Investors Can Do: GWG L Bond investors should contact Kaplan Rothstein Prüss Peraza, P.A., a securities arbitration law firm, for a free and private consultation. KRP2 will assess the merits of any FINRA arbitration claim that you may have against the brokerage firm that sold you the GWG L Bonds. If you choose to hire KRP2 to represent you in such a claim, KRP2 represents clients on a contingency-fee basis, whereby you only owe attorneys’ fees if and when KRP2 recovers money for you. 

Contact an investment fraud attorney at Kaplan Rothstein Prüss Peraza, P.A. for a FREE case evaluation. Our offices are located in  Miami, Los Angeles, West Palm Beach, New York, and Naples and we represent clients nationwide. Translation services are available.

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