Beneficient reaches agreement to settle GWG litigation

Beneficient (BENF) announced that it has entered into a binding agreement to settle all claims in the previously disclosed lawsuits relating to GWG Holdings in federal court in the Northern District of Texas and the Bankruptcy Court for the Southern District of Texas against the company, its subsidiaries, and each of their current and former directors and officers, including its founder and CEO, Brad Heppner, for a sum within applicable insurance policy limits. The company and its directors and officers have vigorously contested and continue to contest the allegations in the GWG Litigation, fundamentally challenging the underlying factual assertions and maintaining substantive and well-founded defenses. The company’s decision to enter into this settlement agreement was based on eliminating ongoing costs, distractions, and other risks inherent in litigation. The proposed settlement, which is subject to court approval and other conditions, would resolve all claims asserted against the Beneficient Parties without any admission, concession or finding of any fault, liability or wrongdoing by the company or any defendant. Under the terms of the proposed settlement, the plaintiffs will receive an agreed upon amount of cash that will be paid entirely from funds available under applicable insurance policies. Following the settlement of the GWG Litigation, other GWG-related claims against parties other than the company, its subsidiaries, and each of their current and former directors and officers, including its founder and CEO, remain outstanding, including certain claims against entities related to Beneficient’s founder and CEO to whom Beneficient owes certain indemnification obligations. The company intends to support a vigorous defense against such claims.