GWG L Bonds Update (November 2025): Payout Timeline, Lawsuits, Settlements & What Investors Can Expect Now

Updated: November 18, 2025

Below is the latest information for GWG L Bond investors following the November 17, 2025 joint status report filed by the GWG Wind Down Trust and the GWG Litigation Trust.

Quick Summary (Investor Snapshot)

Payout timing: No distribution date announced. Unlikely before 2026.
Projected recovery: Still 2.694% – 3.446% of invested capital.
Cash available: Approx. $22.96 million transferred to the Wind Down Trust from settlements.
Litigation update: $50.5 million D&O insurance settlement preliminarily approved; final hearing set for January 13, 2026.
Trustee issues: Former Trustee Elizabeth Freeman resigned; motions pending regarding claw back of fees and appointment of a new trustee.
Criminal charges: Former CEO Bradley Heppner indicted for securities fraud (DOJ, SDNY).
Investor takeaway: Bankruptcy recovery remains pennies on the dollar—FINRA arbitration remains the only meaningful path to substantial recovery.

Visit Iorio Law PLLC’s GWG L Bond Investor Recovery Center for the latest information about our firm’s investigation.

The November 2025 Status Report: What Investors Need to Know

On November 17, 2025, the GWG Wind Down Trust and GWG Litigation Trust filed a joint status report with the U.S. Bankruptcy Court, providing an update through September 30, 2025.

This update comes amid significant turmoil:

Trustee Resignation & Court Motions

Early November 2025: Trustee Elizabeth Freeman resigned as Wind Down Trustee.
Mid-November: Bankruptcy Judge Marvin Isgur was recused from the case following an ethics scandal.
November 18, 2025: U.S. District Judge Alia Moses referred pending motions to Chief Bankruptcy Judge Eduardo V. Rodriguez.
- Motions include:
  - A request to claw back all trustee fees previously paid to Ms. Freeman
  - A request to appoint a new Wind Down Trustee

DOJ Criminal Charges

Weeks before the status report, the U.S. Department of Justice charged former GWG CEO Bradley Heppner with securities fraud, wire fraud, and falsification of records in the Southern District of New York.

D&O Settlement

In September 2025, the U.S. District Court for the Northern District of Texas preliminarily approved a $50.5 million D&O insurance settlement connected to the GWG class action.

A final approval hearing is scheduled for January 13, 2026.

Key Takeaways From the November 17, 2025 Filing

1. Litigation Trust Recoveries

Total settlement proceeds collected: ~$31.9 million, including:

Mayer Brown LLP — $21 million
Whitley Penn LLP — $8.5 million
Sabes defendants — $2.3 million
Five additional parties — $110,333

After litigation expenses, $22.96 million was transferred to the Wind Down Trust.

2. Litigation Trust Expenses Exceeded Funding

The Litigation Trust has spent ~$4 million, approximately $1 million more than provided for under the confirmed plan. The Litigation Trust plans to replenish and add to legal reserves from future settlements.

3. D&O Settlement

The Court preliminarily approved the $50.5 million D&O settlement.

4. Bankruptcy Recovery Remains Extremely Low

The November status report confirms no material change.

GWG L Bond investors are projected to receive only 2.694% to 3.446% of principal.

This remains roughly $26.94 to $34.46 per $1,000 invested.

When Will GWG L Bond Investors Receive Payouts?

As of November 18, 2025:

No distribution date has been set.
No payments are expected before 2026.
Even if a distribution occurs, investors should expect only pennies on the dollar.

Example:

A $100,000 investment may return $2,694 – $3,446, at most.

Why FINRA Arbitration Remains the Best Reconvey Path

Given the near-worthless bankruptcy outcome, FINRA arbitration claims against the broker-dealers who sold GWG L Bonds remain the only realistic chance for meaningful recovery.

Why?

Brokerage firms earned up to 8% commissions, creating powerful sales incentives.
Many firms ignored red flags, including accounting failures, auditor resignations, SEC investigations, and GWG’s shift into risky alternative asset exposure.
FINRA and the SEC have sanctioned or charged more than 15 firms and brokers, including:
- Emerson Equity
- Tony Barouti
- Western International Securities
- Arete Wealth Management

GWG L Bond Arbitration Win Rate

Investors have won 18 of 20 FINRA hearings (90%) nearly three times the average FINRA customer win rate.

Iorio Law PLLC, led by attorney August M. Iorio, has already recovered more than $3.8 million for GWG L Bond investors nationwide. Iorio Law PLLC represents clients on a contingency-fee basis—no recovery, no fee.

Why Choose Iorio Law PLLC?

Attorney August M. Iorio has already recovered more than $3.8 million for GWG L Bond investors and was among the first attorneys in the country to aggressively pursue these claims.

Our Track Record:

700+ cases resolved nationwide
Nearly $100 million recovered for investors
$3.8M+ recovered for GWG L Bond investors
Nationally recognized for securing the first-ever FINRA award against Robinhood over its 2021 trading restrictions
January 2025: Won a control-person liability case in FINRA Arbitration No. 24-00004 involving a GWG L Bond sale

What you get with Iorio Law PLLC:

Client Testimonials – ⭐ ⭐ ⭐ ⭐ ⭐

★★★★★ “Working with August Iorio on a matter involving GWG L Bonds was a great experience! He took the time to explain the process… I highly recommend him.” — Darcey M.

★★★★★ “He was a man of his word and negotiated a fair settlement… I would absolutely recommend Mr. Iorio.” — Brian B.

★★★★★ “Efficient, fast, very knowledgeable… I highly recommend him.” — Mahmood A.

★★★★★ “An extraordinary job… I received an excellent outcome because of Mr. Iorio.” — Henry L.

★★★★★ “Accomplished what we thought was impossible… Attorney Iorio took it on and was a bulldog.” — Allan F.

Explore Your Options: Free Case Evaluation

If you purchased GWG L Bonds through Emerson Equity, Western International Securities, Arete Wealth Management, Aegis Capital Corp—or any other broker-dealer—contact us for a free, confidential case evaluation.

Time is running out for investors who purchased in late 2019 and 2020 due to FINRA’s six-year eligibility rule.

Our firm is dedicated to holding brokerage firms accountable and helping investors recover their losses.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007
🖊️ Free Case Review: Contact Form

Client Reviews

August represented my associate and me in the GWG arbitration and accomplished what we thought was impossible. He successfully tracked down the elusive owner of a firm—who had sold the company shortly after our issue arose—and secured a fair settlement for us. Another law firm had already told me...

Allan F.

August Iorio is a wonderful, very competent attorney. He helped me through a very complicated financial situation to a result that benefitted me greatly. He is responsive, efficient, and very accommodating to my personal situation. I highly recommend him.

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I was impressed with August Iorio's directness and clarity in explaining the claim process and how it might work out. I also appreciated his promptness in getting back to me when I had questions or other concerns. The law firm is very good at what it does.

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