What’s Happened With the Litigation Over Settlement Factoring in Maryland

What’s Happened With the Litigation Over Settlement Factoring in Maryland

Maryland has been at the center of attention since the Washington Post began its series of news stories about structured settlement factoring.

Some of what’s happened in Maryland involve changes in legislation (see here) or judicial rules (see here).

Another front has been in state court, where two lawsuits have been at the center of attention, when the topic is structured settlement factoring.

One lawsuit was brought by the Maryland Attorney General, which sued factoring company, Access Funding, LLC., the company whose practices allegedly included the targeting of lead paint poisoning victims.  (For more, see this post.)

The Attorney General alleged that Access Funding, and other defendants working with the factoring company, made misrepresentations to Maryland courts when the company obtained orders approving transfers of structured settlement payment rights, and so the transactions should be declared void, and Access Funding should have to pay penalties.

(Some months ago, the Maryland Circuit Court denied Access Funding’s motion to dismiss the Attorney General’s complaint.  For more, see here.)

The other lawsuit is also against Access Funding, and is a class action against the company for engaging in business practices that allegedly took unfair advantage of payees.

This year, the two Maryland lawsuits converged, at least in part.

The Attorney General moved to intervene in the class action, and recently the Maryland Circuit Court granted that motion.  The AG is said to oppose a proposed settlement of the class action.  For more, see here.  The expectation is that in the coming months, the settlement proposal will go before the judge in the class action action case for a hearing on the fairness of the proposed settlement.  The Maryland Attorney General, now having been granted the ability to participate in the proceeding, may have more to say about the proposal.


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