Beneficient Responds to Claims Made by GWG Litigation Trustee
DALLAS, April 22, 2024 (GLOBE NEWSWIRE) -- Beneficient (Nasdaq: BENF), a technology-enabled platform providing liquidity, primary capital, and related trust and custody services to holders of alternative assets through its proprietary online platform, AltAccess, issued the following statement in response to a complaint filed on April 19, 2024 by the trustee of the GWG Litigation Trust (“Litigation Trustee”):
Beneficient is disappointed but not surprised that the Litigation Trustee has decided to file suit against Beneficient, affiliated entities, and its officers and directors. The Litigation Trustee crafted a deliberately selective reading of complex and permissible business transactions, negotiated at arm’s length that spanned many years as GWG Holdings sought to implement its disclosed business strategy to diversify away from its concentrated investment in life insurance policies. Although he was appointed ten months ago to conduct another investigation, the Litigation Trustee’s claims are similar to issues previously asserted in GWG Holdings bankruptcy proceeding, at great expense to the GWG Holdings estate. The market has been aware of the allegations asserted in the GWG Holdings bankruptcy since 2022.
As it extensively laid out in various GWG Holdings bankruptcy filings, Beneficient has robust defenses to these claims. Beneficient looks forward to dismantling the Litigation Trustee’s allegations in court and providing a clear, factual and complete response to the complaint’s narrative.
Beneficient remains focused on achieving new milestones through its platform, which it believes offers a source of much-needed public market liquidity to investors in and managers of private market assets.
The GWG Litigation Trust was formed as part of the resolution of the GWG bankruptcy and has the right to investigate, litigate, settle, or abandon potential claims previously held by the GWG bankruptcy estate. The sole beneficiary of the GWG Litigation Trust is the GWG Wind Down Trust, which was created along with the GWG Litigation Trust, and holds shares in Beneficient.
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About Beneficient
Beneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors – mid-to-high net worth individuals and small-to-midsized institutions – with early liquidity exit solutions that could help them unlock the value in their alternative assets. Ben’s AltQuote™ tool provides customers with a range of potential liquidity exit options within minutes, while customers can log on to the AltAccess® portal to digitize their alternative assets in order to explore early exit opportunities, receive proposals for liquidity in a secure online environment, engage custodial services for the digital alternative assets and receive data analytics to better inform investment decision making. Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner.
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