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Category: Lottery

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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Illinois Offers No Guarantee That It Will Make Lottery Payments, Says Chicagoan in News Story on State’s Budget Woes

Illinois Offers No Guarantee That It Will Make Lottery Payments, Says Chicagoan in News Story on State’s Budget Woes

“Powerball was the only thing that I would buy, because I knew that it would pay out,” said Anthony Martinez, who lives in the Logan Square neighborhood. “With the Illinois budget crisis, it’s not a guarantee that Illinois’ going to actually pay out on your lottery winnings.” That person-on-the-street comment appeared in an article headlined, “Powerball, Mega Millions to drop Illinois due to state’s budget crisis” that ran in the Chicago Sun-Times last week. For more about the Illinois lottery’s troubles making payments,…

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New Jersey Tax Court Bars State From Taxing Installment Payments for Winning Lottery Bought Before 2009 Change in State Law

New Jersey Tax Court Bars State From Taxing Installment Payments for Winning Lottery Bought Before 2009 Change in State Law

The State of New Jersey taxes lottery winnings, but only after the state changed its tax law in 2009.  Several plaintiffs challenged various ways that the state attempted to collect taxes on winnings that were based on lotteries won, or lottery tickets purchased, before the 2009 change in the law, and last week the state’s tax court ruled in their favor.  One opinion in particular may be of interest to Secondary Insurance Market Blog readers, in that the lottery winners chose…

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News Report: Wisconsin Appeals Court Says Lottery Assignment Contravened Statute, So State Gets to Keep $423,000

News Report: Wisconsin Appeals Court Says Lottery Assignment Contravened Statute, So State Gets to Keep $423,000

A company that entered into an agreement to purchase a lottery winner’s future payments “has no rights to about $429,000 the state of Wisconsin witheld to cover the original winner’s tax bill”, according to a report in the Milwaukee Journal Sentinel regarding a recent opinion from the Wisconsin Court of Appeals. The opinion “says [lottery winner] J. Donald Bottolfson’s efforts to steer his payments through a trust didn’t change the fact that his sale of annual payments for a lump…

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Illinois Lottery Winners Lose In Court Over State’s Failure to Make Payments

Illinois Lottery Winners Lose In Court Over State’s Failure to Make Payments

A federal court ruled this week that the state of Illinois is immune from claims filed in a lawsuit by lottery winners who have not received recent payments from their winnings. Illinois earlier this year stopped paying lottery payments to winners, due to the fact that the state failed to adopt a budget for the coming year. As a result, many Illinois lottery winners have been unable to collect their winnings.   The state was sued by those winners, and the…

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Factoring Company’s Attempt to Collect ‘Advance’ Was an Impermissible ‘End Run’ Around Lottery Assignment Statute, Says Appeals Court

Factoring Company’s Attempt to Collect ‘Advance’ Was an Impermissible ‘End Run’ Around Lottery Assignment Statute, Says Appeals Court

By statute, when someone wins the Massachusetts lottery and is entitled to receive the lottery winnings over time, the winner can sell the rights to the future payments only if an “appropriate judicial order” enters regarding the sale. So, what happens if a lottery winner enters into an agreement with a factoring company to sell future payment rights, and the company provides an “advance payment” to the lottery winner – but then the company fails to obtain an “appropriate judicial…

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Time Magazine Reports That Illinois May Not Cut Checks for Lottery Winnings

Time Magazine Reports That Illinois May Not Cut Checks for Lottery Winnings

What happens when a state cannot cut checks for lottery winnings?  In Illinois, those who care about bigger lottery pay-outs, may soon find out, as Time magazine reports that the state of Illinois will stop cutting checks for larger lottery winnings.  For more, see the Time article, Illinois Says It Can’t Pay Big Lottery Winners, here.

Florida Appeals Court Rules in Long-Running Lottery Factoring Dispute

Florida Appeals Court Rules in Long-Running Lottery Factoring Dispute

A dispute between two factoring companies over a stream of lottery payments began in 1999. One company, Prosperity Partners, sued the other company, Settlement Funding. There were years of litigation that included “many, many” subpoenas of the payee, according to Prosperity Partners. And the lottery winner “disappeared, reappeared” and “disappeared again” – again, according to Prosperity Partners  – before the trial court ruled in favor of Settlement Funding. The most recent development occurred in May, when the Florida Court of Appeal…

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More About Arizona Appellate Opinion Concerning Lottery Dispute

More About Arizona Appellate Opinion Concerning Lottery Dispute

Last year, Secondary Insurance Market Blog included a number of posts about disputes between factoring companies.  One such post described an appellate opinion from Arizona concerning a lawsuit between two factoring companies over a lottery payment factoring dispute: Arizona Appeals Court Rules For Winner Of Race To The Courthouse In Legal Battle Between Two Factoring Companies Over Lottery Payments is linked here. Arizona Appellate Blog also wrote a post about the same opinion, Woodbridge Structured Funding, LLC v. Arizona Lottery, No. 1…

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Appeals Court: New Jersey Lottery Assignment Law Means Last Two-Year Stretch of Winner’s Payments Can’t Be Sold

Appeals Court: New Jersey Lottery Assignment Law Means Last Two-Year Stretch of Winner’s Payments Can’t Be Sold

A number of states have statutes that govern the assignment of lottery prize payments.  New Jersey’s, enacted in 1998, contains a provision that says that a lottery winner cannot sell “the last two annual prize payments”.  This phrase, argued factoring company BofI Federal Bank in a case decided this month (In re: Petition of BofI Fed. Bank to Assign Lottery Prize Payment Rights, Docket No. A-1694-12T3, 2014 N.J. Super. Lexis 134 (N.J. Super. Ct., App. Div. Oct. 3, 2014)), meant…

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