Will NFL ‘Feeding Frenzy’ Lead to ‘Watershed’ Moment – and Greater Disclosure – for Litigation Funding?

Will NFL ‘Feeding Frenzy’ Lead to ‘Watershed’ Moment – and Greater Disclosure – for Litigation Funding?

The news in July was that litigation funding companies were engaging in a “feeding frenzy” of agreements with former National Football League players who could be among the nearly 5,000 NFL veterans entitled to a share of the $1 billion concussion claims settlement. The latest news reports two new twists: that the agreements are being challenged en masse, in ways that involve some unusual procedural means, and that a lead attorney in the concussion lawsuit – who has voiced criticisms of…

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Virginia Court Ruling Allows Payee’s Challenge to Factoring Transactions to Proceed

Virginia Court Ruling Allows Payee’s Challenge to Factoring Transactions to Proceed

The legal rulings in SAF Funding, LLC v. Taylor, Case No. CL-3022, 2017 Va. Cir. LEXIS 316 (Va. Cir. Ct. Oct. 27, 2017), are many and follow a long and complicated history, but the bottom line is this: the structured settlement payee who is challenging factoring transactions may proceed with his lawsuit. In the ruling, the Virginia Circuit Court for City of Portsmouth addressed a number of ancillary issues, but the key determination was that the payee would be allowed to try…

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Report: J.G. Wentworth To File For Second Bankruptcy In Less Than A Decade

Report: J.G. Wentworth To File For Second Bankruptcy In Less Than A Decade

The Philadelphia Business Journal on Friday reported that J.G. Wentworth will file for bankruptcy, the second bankruptcy filing by the factoring company in less than a decade. The Business Journal said the Pennsylvania “company reached an agreement with lenders to significantly reduce its debt and enhance its balance sheet” and that the “agreement also calls for the board of directors the be reconstituted to reflect new ownership of the company.” In addition, according to the report, the “restructuring will be…

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Federal Court in Florida Says Putative Class Action Challenging Litigation Funding Practices Should Be In Illinois State Court

Federal Court in Florida Says Putative Class Action Challenging Litigation Funding Practices Should Be In Illinois State Court

A putative class action filed against a litigation funding company – claiming that the company violated usury, lending practices, and other laws – has been dismissed as filed in the wrong forum, although the plaintiff may seek to proceed in another jurisdiction. In Smith v. Oasis Legal Fin., LLC, Case No. 8:17-cv-2163-T-33JSS, 2017 U.S. Dist. LEXIS 180081 (M.D. Fla. Oct. 31, 2017), the court dismissed the case under the doctrine of forum non conveniens, adding that because the court decided “that the case…

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Appeals Court Affirms Dismissal of Antitrust, False Advertising Claims Brought by One Factoring Company Against Another

Appeals Court Affirms Dismissal of Antitrust, False Advertising Claims Brought by One Factoring Company Against Another

A federal court of appeals affirmed the dismissal of factoring company’s lawsuit against another factoring company over practices that allegedly violated antitrust, false advertising and other unfair trade practices. The Ninth Circuit Court of Appeals last week affirmed the decision by the U.S. District Court for the Central District of California to dismiss the complaint filed by Novation Ventures, LLC, against J.G. Wentworth and affiliated companies, including Peachtree Financial. About Novation’s antitrust claims, the Ninth Circuit said in Novation Ventures…

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Claims Against Viatical Company Dismissed, Claim against Agent Survives In Lawsuit Over Deal Where – 20 Years After $20,000 Investment – Viators Are Still Alive

Claims Against Viatical Company Dismissed, Claim against Agent Survives In Lawsuit Over Deal Where – 20 Years After $20,000 Investment – Viators Are Still Alive

And, as if on cue given the U.S. News & World Report story (here) about how investors run a serious risk if an insured lives longer than expected, a federal court in New York issues a ruling in a lawsuit involving a 1998 viatical investment. “Nearly twenty years later, the viators are still alive, and plaintiff is without any return on his investment,” said the court in Amberger v. Legacy Capital Corp., 17 Civ. 532(NRB), 2017 U.S. Dist. LEXIS 171816…

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Life Settlements As ‘Morbid’ Investments: ‘An Asset and A Liability’

Life Settlements As ‘Morbid’ Investments: ‘An Asset and A Liability’

A U.S. News and World Report article about life settlements includes a warning from an A.M. Best managing director of insurance-linked securities about how “A life settlement isn’t just an asset; it’s an asset and a liability.” The most significant risk to investors, the article indicates, “is that the insured lives longer than expected and investors end up paying more in premiums than they receive from the death benefit.” The article, “The Morbid Niche of Life Settlement Funds” by Coryanne…

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New York Times: Life Settlements Businesses No Longer Targeting Only the Very Affluent

New York Times: Life Settlements Businesses No Longer Targeting Only the Very Affluent

A New York Times article says that life settlements industry industry, “which previously targeted the very affluent, has begun courting middle class” life insurance policy owners. The article provides a first-hand account of obtaining a quote, as well as commentary about the business, and also points out that – in response to questions about life settlement business practices, such as undisclosed broker commission rates – “43 states have adopted life-settlement regulations, usually requiring that companies be licensed and consumer disclosures.”…

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Florida Court Sentences Factoring Company Attorney for Forging Judges’ Signatures on ‘Orders’ Involving Transfers of Settlement Payments

Florida Court Sentences Factoring Company Attorney for Forging Judges’ Signatures on ‘Orders’ Involving Transfers of Settlement Payments

One-hundred and eleven and three-hundred and sixty-four. One-hundred and eleven is the number of times that Jose Manuel Camacho Jr. was alleged to have forged the signatures of Broward County, Florida, judges on documents that he passed off as “orders” – orders approving transfers of structured settlement payment rights. Three-hundred and sixty-four is the number of days that Camacho was sentenced to spend in county jail, when he was sentenced in August, after pleading guilty to 14 counts of forgery…

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Revised Connecticut Structured Settlement Protection Act Goes Into Effect, Addressing Probate Matters

Revised Connecticut Structured Settlement Protection Act Goes Into Effect, Addressing Probate Matters

The Connecticut Structured Settlement Protection Act is one of 49 state statutes that provide that a transaction involving the sale or loan or the right to receive future structured settlement payments is ineffective unless the purchaser meets certain requirements such as providing a disclosure statement to the individual seller. Perhaps the most important requirement is that the purchaser (the “transferee”, in the words of the statute, which is usually a factoring company) must begin a court proceeding and bring the transaction before…

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