According to the Complaint, GWG Holdings, Inc. ("GWGH") was focused on the acquisition of life insurance policies in the secondary market until 2018. GWGH raised capital for the purchase of life insurance policies primarily through the sale of bonds, marketed under the name “L Bonds,” to retail investors through a network of broker-deal firms registered with the Financial Industry Regulatory Authority.

In 2018, GWGH announced a major shift in its stated purpose: instead of investing in life insurance policies, GWGH would invest in The Beneficient Company Group L.P. GWGH represented that The Beneficient Company Group L.P. was developing a business to, among other things, provide liquidity to holders of alternative assets by making loans secured by those assets. On or about March 30, 2020, GWGH filed with the Securities and Exchange Commission a registration statement for an L bond offering, which became effective on June 3, 2020. In August 2020, GWGH began offering and selling L bonds pursuant to the June 2020 registration statement. GWGH sold over $350 million of L bonds between August 2020 and April 2021 in connection with the June 2020 registration statement.

The Complaint alleges that Defendants made material misrepresentations and omissions in the June 2020 registration statement concerning GWGH’s use of the net proceeds from the L bonds offering, and that, contrary to representations in the registration statement, L bond proceeds were neither used to increase the value of GWGH’s assets (alternative or otherwise), nor to provide an expanded set of products or services for investors, nor to increase working capital or liquidity, nor to satisfy any regulatory requirements.

By April 2021, GWGH was forced to discontinue the L bond offering as it was unable to timely file its 2020 annual report and soon faced liquidity problems. In February 2022, GWGH announced that it was unable to continue making payments on L bonds and that the bonds lacked value on account of GWGH’s inability to service them.

On April 20, 2022, GWG Holdings, Inc. filed a voluntary petition for relief in the United States Bankruptcy Court for the Southern District of Texas.

On August 5, 2022, the Court issued an Order appointing Lead Plaintiff and Counsel.

On September 12, 2023, the Court issued an Order consolidating cases. All future docketing was ordered to be done in the lead case 22-CV-00410. Lead Plaintiff filed a consolidated Complaint on October 2, 2023.

On July 17, 2024, the Class entered into a Stipulation and Agreement of Settlement with one of the Defendants.

On October 24, 2024, the Court entered an Order granting the remaining Defendants' Motions to Dismiss. Plaintiff was given leave to amend the Complaint. Lead Plaintiff filed an amended consolidated Complaint on November 14.

The Court granted preliminary approval of the Settlement on December 12, 2024.

On March 6, 2025, the Class entered into a Settlement Agreement with additional Defendants.