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Author: Peter Vodola

A ‘No-Call’ in the NFL Concussion Settlement Litigation? Litigation Funders May Think Twice About Ruling That’s Now Being Appealed

A ‘No-Call’ in the NFL Concussion Settlement Litigation? Litigation Funders May Think Twice About Ruling That’s Now Being Appealed

A litigation funding company has filed an appeal from the ruling last month by the judge overseeing the NFL concussion settlement – a ruling that invalidated litigation funding agreements with cognitively-impaired ex-players. And that ruling raises a question: did the judge make a no-call, like NFL refs sometimes do – that could have prevented the litigation funders from even attempting to recoup any monies paid to the players. That question gets explored in a LinkedIn article available here.  An article…

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In J.G. Wentworth’s Second Bankruptcy, Trustee Objects, But Court Approves Plan

In J.G. Wentworth’s Second Bankruptcy, Trustee Objects, But Court Approves Plan

Settlement factoring company J.G. Wentworth has emerged from its second bankruptcy in less than a decade. Judge Kevin Gross, of the U.S. Bankruptcy Court for the District of Delaware, earlier this month issued an order confirming a prepackaged reorganization plan of J.G. Wentworth based on an agreement with its lenders. A trustee had objected to the plan (see “JG Wentworth Ch. 11 Plan Approved Over Trustee Objection”, Law360 (subscription required), available here), but nonetheless the court approved the plan on…

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Another Secondary Market Company Files For Bankruptcy

Another Secondary Market Company Files For Bankruptcy

Less than a month after the bankruptcy filing of J.G. Wentworth (as described here), another settlement factoring company has filed for bankruptcy. Woodbridge Structured Funding is one of the Woodbridge companies that has sought bankruptcy protection. Many news stories describe not only the bankruptcy filing but also the Securities and Exchange Commission’s probe.  Among the stories are the following: “Property Group Woodbridge Files For Bankruptcy Amid SEC Probe”, Reuters, available here; “Woodbridge Bankruptcy Burns Advisers And Real Estate Investors”, Investment…

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Litigation Funding Business Is ‘Littered With Ethical And Philosophical Quagmires’ Says U.S. News & World Report Article

Litigation Funding Business Is ‘Littered With Ethical And Philosophical Quagmires’ Says U.S. News & World Report Article

A reporter for U.S. News and World Report this week took a look at the “lightly regulated” business of litigation financing, and came away with some interesting comments about the “perverse”business. In a January 22, 2018 article headlined “How Wall Street Invests in Justice”, investing reporter John Divine said that “Litigation financing is an incredibly innovative and interesting creation of high finance, but it’s littered with ethical and philosophical quagmires.” Among his other comments were the following: The “obscure field…

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In Settlement With Maryland Attorney General, Settlement Factoring Company Agrees to Avoid Doing Business In State For Seven Years

In Settlement With Maryland Attorney General, Settlement Factoring Company Agrees to Avoid Doing Business In State For Seven Years

Accused of deceptive marketing – including supposedly sending letters to consumers on behalf of a judge who turned out to be a fictitious person – a structured settlement factoring company has entered into an agreement with the Maryland Attorney General’s office, and agreed to pay six figures in restitution and penalties. The settlement between factoring company Annuity Sold and the Maryland AG also bars the company from doing business in Maryland for seven years. The Maryland Attorney General said in…

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In NFL Concussion Settlement Litigation, Company Appeals Ruling That Enforced Anti-Assignment Provision To Nullify Deals With Ex-Players

In NFL Concussion Settlement Litigation, Company Appeals Ruling That Enforced Anti-Assignment Provision To Nullify Deals With Ex-Players

A ruling in December by the judge overseeing the $1 billion settlement between the National Football League and ex-players with cognitive-disability claims stemming from their football playing careers has now led to an appeal. The ruling – that a contractual anti-assignment clause (in the settlement agreement between the ex-players and the NFL) rendered void any assignment agreements between the ex-players and litigation funding companies – is being appeal by one of the litigation funding companies. RD Legal Funding filed the…

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More From The New York Post About Litigation Funding: News Stories About Scam, Political Contributions, Editorial

More From The New York Post About Litigation Funding: News Stories About Scam, Political Contributions, Editorial

In covering the litigation funding “cottage” industry, the New York Post this week did not only report on how “Litigation Funders ‘Make It Hard Not To Sue’ The City” (Secondary Insurance Market Blog post available here).  The Post also published two other news stories and an editorial on litigation funding. In one news article, the Post the reported that “Litigation-financing firm LawCash’s eagerness to expand its operations in Florida led the company to get scammed out of nearly $100,000 by a…

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New York Post: Litigation Funders ‘Make It Hard Not To Sue’ New York City

New York Post: Litigation Funders ‘Make It Hard Not To Sue’ New York City

“These companies make it hard not to sue the city.  A finance firm run by [television personality] Bethenny Frankel’s boyfriend is among a host of companies that cost taxpayers millions of dollars a year by encouraging questionable lawsuits against the Big Apple with the promise of quick cash advances.” That’s the start of a New York Post story about a litigation funding company that has backed many lawsuits against New York City. The Post quotes a law school professor as…

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Ohio Revises Structured Settlement Protection Act, Adding Interest Rate Disclosure and Payee Appearance Requirements

Ohio Revises Structured Settlement Protection Act, Adding Interest Rate Disclosure and Payee Appearance Requirements

Ohio Governor John Kasich last week signed into law a bill revising the Ohio Structured Settlement Protection Act, making some fairly extensive revisions that include eliminating the requirement that a payee receive independent professional advice,  doing away with the express mandate that the court that created the structured settlement also approve the transfer, and adding a requirement that the payee must personally appear at the hearing on the transfer. This is the first revision to the Ohio SSPA since it was…

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In Time Frame Leading Up to Latest Bankruptcy, J.G. Wentworth Says It Faced Increased Competition in Settlement Factoring Business

In Time Frame Leading Up to Latest Bankruptcy, J.G. Wentworth Says It Faced Increased Competition in Settlement Factoring Business

As described in a blog post here, J.G. Wentworth last month filed for its second bankruptcy in less than a decade. More recently, J.G. Wentworth, in filings with the bankruptcy court, said that in recent years it faced increased competition among companies that seek to purchase future structured settlement payment rights. In a disclosure statement filed in the bankruptcy proceeding, the company said that, in existing to existing competitors, “the Company faced increased competition from numerous smaller entrants to the market…

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