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Author: Peter Vodola

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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New York Court Rejects Proposed Transfer Of Structured Settlement Payments By Lead Poisoning Victim

New York Court Rejects Proposed Transfer Of Structured Settlement Payments By Lead Poisoning Victim

When Andre Edwards came in front of New York Justice Debra Silber on the hearing on the latest proposed transfer of his structured settlement payment rights, he told her “that the settlement was for the brain damage he sustained as a child, due to lead poisoning.” Justice Silber also learned – during the course of the New York Structured Settlement Protection Act proceeding whereby a factoring company named Sunny Sky sought judicial approval of a proposed sale of some of the settlement…

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Court Reinstates Claims Against Attorney in Lawsuit Over Settlement Factoring Practices

Court Reinstates Claims Against Attorney in Lawsuit Over Settlement Factoring Practices

Just four months after dismissing all claims against a lawyer who provided independent professional advice for dozens of structured settlement factoring transactions, a federal court reinstated a claim against the lawyer by the Consumer Financial Protection Bureau (CFPB) that has claimed that such transactions involved abusive practices. The CFPB sought leave to file an amended complaint that alleged that structured settlement payees were unaware that attorney Charles Smith was, in fact, a lawyer – and therefore they lacked the intent…

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What Steps Should Factoring Companies Take to Ensure Non-Contravention Of Court Orders?

What Steps Should Factoring Companies Take to Ensure Non-Contravention Of Court Orders?

Forty-nine states have structured settlement protection acts – laws that say that if a person who is entitled to receive future structured settlement payments wants to sell the right to those payments to a factoring company in exchange for a more immediate (but lower) payment, then the transaction is not legally effective unless a court approves the deal. These SSPAs generally provide that a court can approve a transaction only where the court can find that such a transaction is…

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Following NFL Concussion Court’s Ruling, Interesting Timing For Article about Whether Litigation Funding Has ‘Shed Its Stigma’

Following NFL Concussion Court’s Ruling, Interesting Timing For Article about Whether Litigation Funding Has ‘Shed Its Stigma’

Law360 has interesting timing this month. A few days after a court issues perhaps the highest profile ruling involving litigation financing – striking as void agreements with NFL players in a class action over concussion and cognitive impairments suffered during their professional football careers (see the Secondary Insurance Market Blog post here) –  Law360 asks “Has Litigation Financing Shed Its Stigma?” A link to the Law360 article (mostly behind pay wall) is here.