A Kentucky man’s tale of winning the lottery and then dying broke recently made headlines in the United Kingdom, and it has also caught the attention of in the U.S. The Daily Mail earlier this month published a story under the headline: “Tiffany’s father won a $27m Powerball jackpot when she was 11. A decade later he died broke after he blew it all on a Learjet, fast cars, bad deals and drugs.” The story, available here, is yet another…
This month, the Texas Court of Appeals, Eleventh District (Eastland), released an opinion involving litigation over lottery transactions. The transactions occurred in 1996 and 2001, and were between, among other parties, the lottery winners, Alfredo and Idalia Galindo, and a purchaser of the lottery payments, Prosperity Partners, Inc. The latter transaction was approved, pursuant to the Texas Lottery Act, by an order of a Texas court in 2001. When the transactions went awry, the Galindos filed suit. That litigation began…
Financial advisor Dan Finn recently wrote about an individual who won the lottery – and the real gamble that happened afterwards. Dan’s comments are available here.
In the world of secondary insurance markets, an “advance” is a payment to a customer or potential customer of a secondary market transaction. There are other names for the term, but advances are usually made by a company in order to induce the customer to proceed with a transaction with that company. There can be many ways an “advance” can be made, and some companies advertise the fact that they offer advances – although the fine print is somehow not…
Factoring companies have said that it is a common situation for one factoring company to compete with another factoring company for deals with payees considering selling their structured settlement payment rights or their lottery payments. Some factoring companies have said that, where one company takes the lead and files court papers, it is fairly typical for another company to compete for the deal and – if it succeeds in convincing the payee to switch companies – to pay the first…
The initial public offering of JGWPT Holdings, Inc. – parent company of J.G. Wentworth and Peachtree Settlement Funding – was completed last week (as described here). But prior to the IPO, at least one commentator offered some criticism of the financial aspects of the deal. Writer Antoine Gara wrote for thestreet.com that “J.G. Wentworth’s IPO provides a rare glimpse into the types of financial structures that existed prior to the collapse of firms like New Century, Lehman Brothers and Bear…
JGWPT Holdings, Inc. – parent company of J.G. Wentworth and Peachtree Settlement Funding – completed its $100-million-plus initial public offering last week and began trading on November 8 on the New York Stock Exchange, according to various news reports. Some reports (such as the one here) said that JGWPT had sold 9,750,000 shares at $14 a share – a price that was lower than initially expected – and that the underwriters had an option to buy an additional 1,462,500 shares.
J.G. Wentworth’s holding company, JGWPT Holdings, Inc., is considering an initial public offering in the near future, according to news reports from several sources this week. The news articles include the following: “J.G. Wentworth Pursues IPO“, in the October 6, 2013 Wall Street Journal; “J.G. Wentworth Operator Files To Raise $200 Million U.S. IPO“, at today’s Bloomberg.com. Before it was owned by JGWPT, J.G. Wentworth considered going public in later 1997, but changed course in early 1998 (as described in…
The narrow legal issue in Turton v. Singer Asset Fin. Co., No. 4D12-1340, 2013 Fla. App. LEXIS 14088, 2013 WL 4727388 (Fla. Ct. App. Sept. 4, 2013), was whether the statements made in a factoring company’s employee manual gave rise to enforceable contract rights under Florida law, which recognizes a general rule that such statements do not create an employment contract but also that there is an exception to the general rule for statements that induce an employee to refrain…
The Internal Revenue Service’s annuity tables for valuation of annuities should not apply to lottery winnings that are subject to restrictions on transfer, when the IRS is valuing estates that include such winnings. Such was one of the conclusions of Chris Hammond, the author of a law review note published last year, when he was scheduled to graduate Ohio State’s law school. For those who are interested in lottery assignments and their impact, the article – entitled “Jackpot! You Lose?:…