#United States #Dallas #securities litigation #GWG Holdings #Girard Sharp

Girard Sharp Announces Historic Settlement

On October 20, 2025, Girard Sharp LLP took a significant step in securities law by announcing a proposed settlement of $50.95 million for individuals affected by the GWG Holdings, Inc. securities litigation. This important development, pending in the Northern District of Texas, is poised to provide relief to class members who purchased or acquired L Bonds from GWG Holdings during a specified period.

Background of the Case

The litigation arose from claims against GWG Holdings, where allegations circling around misrepresentations and omissions regarding the company’s financial health and the risks associated with its L Bonds were made. The class period spans from June 3, 2020, to April 16, 2021. Investors argue they were misled about the bonds' viability and that more transparency regarding the company's financial status was necessary.

Proposed Settlement Details

The settlement reached between the lead plaintiff, Frank Moore, and defendants, including GWG's executives and Whitley Penn LLP (the auditing firm), totals $50,950,000. If approved, these funds will resolve all claims related to the class action. The upcoming Settlement Hearing is scheduled for January 13, 2026, where a federal judge will evaluate the fairness and reasonability of the proposed settlement terms.

During this hearing, the court will discuss several key points:

• - Whether the Class should be officially certified for the purposes of the settlements.
• - The fairness of the proposed settlements based on the parties' agreements.
• - The adequacy of the proposed Distribution Plan for the settlement proceeds among class members.
• - An evaluation of attorneys' fees and litigation expenses requested by class counsel.

Impact on Class Members

All individuals who acquired or purchased L Bonds issued by GWG Holdings during the designated class period are part of this ongoing litigation. If you believe you are affected, it is crucial to stay informed about your rights and the implications of this class action lawsuit.

Moreover, any class member wishing to object to the proposed settlements or the Distribution Plan must submit a formal objection no later than December 30, 2025. Alternatively, those wishing to opt-out of the settlement can do so by submitting an exclusion request by the same date. It is important to note that excluding oneself from the class means forfeiting rights to any potential settlement benefits.

Next Steps for Class Members

Members are encouraged to contact the Noticing Agent or class counsel for a complete printed Class Notice, which contains detailed instructions about participation, objections, or exclusion from the class. Copies are accessible via the Settlement Website or by contacting Stretto Inc.

With the proposed settlements on the horizon, Girard Sharp LLP plays a critical role in advocating for those who've faced challenges related to GWG Holdings. This settlement is not only significant in terms of the financial sum involved but also serves as a marker of hope for investors seeking justice in the wake of corporate misrepresentation. It emphasizes the importance of transparency and accountability within financial markets, allowing investors to reclaim some of their losses as a result of the ongoing litigation.

Conclusion

As the landscape of securities litigation continues to evolve, the actions taken by Girard Sharp and the impending settlement serve as vital reminders to both investors and corporations about the significance of ethical financial practices. Be sure to keep an eye on updates leading up to the Settlement Hearing in January 2026, as they will shape the outcome for many affected individuals in this case.