---
schema_version: "secwatch.filing_event.v1"
accession: "0001140361-23-038151"
form_type: "8-K"
ticker: "WBQNL"
cik: "0001785494"
company_name: "Woodbridge Liquidation Trust"
filed_at: "2023-08-07T23:59:59+00:00"
generated_at: "2026-06-12T04:36:52.451176+00:00"
event_type: "litigation"
sentiment: "neutral"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Woodbridge Liquidation Trust settles litigation for $25.5M; suspends distributions due to construction defect claim

## Summary
- Settlement with Davis Graham & Stubbs LLP and S. Lee Terry Jr. for $25.5M; net to Trust ~$17M after legal fees.
- Settlement requires California Superior Court good-faith order; payment due within 30 days of order.
- Indirect subsidiary notified of construction defect claim on a single-family home sold; tendered to insurer.
- Trust Supervisory Board suspends further distributions pending outcome of construction defect investigation.
- Settlement does not release other defendants; no assurance of comparable recoveries from remaining claims.

## SEC filing metadata
- accession: 0001140361-23-038151
- form_type: 8-K
- ticker: WBQNL
- cik: 0001785494
- company_name: Woodbridge Liquidation Trust
- filed_at: 2023-08-07T23:59:59+00:00
- event_type: litigation
- sentiment: neutral
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 1.01, 8.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1785494/000114036123038151/0001140361-23-038151-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1785494/000114036123038151/brhc20056920_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001140361-23-038151
- JSON: https://secwatch.observer/filing/0001140361-23-038151.json
- Plain text: https://secwatch.observer/filing/0001140361-23-038151.txt

## Key facts
- Material Agreements
  Woodbridge Liquidation Trust entered into Settlement Agreement with Davis Graham & Stubbs LLP, S. Lee Terry, Jr. valued at $25,500,000 settlement; net proceeds to Trust approx. $17,000,000 (effective 2023-08-01).
  - Action: entry
  - Agreement: settlement
  - Counterparty: Davis Graham & Stubbs LLP, S. Lee Terry, Jr.
  - Value: $25,500,000 settlement; net proceeds to Trust approx. $17,000,000
  - Effective: 2023-08-01
  source text: settlement are contained in a settlement agreement among Davis Graham & Stubbs LLP, Mr. Terry, and Michael Goldberg as Liquidation Trustee on behalf of the Trust.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1785494/000114036123038151/0001140361-23-038151-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.