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Category: Lottery

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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Arizona Appeals Court Rules For Winner Of Race To The Courthouse In Legal Battle Between Two Factoring Companies Over Lottery Payments

Arizona Appeals Court Rules For Winner Of Race To The Courthouse In Legal Battle Between Two Factoring Companies Over Lottery Payments

Earlier this week, an appeals court issued an opinion in a lawsuit between two factoring companies over a structured settlement factoring dispute.  See In Dispute Between Factoring Companies, Appellate Court Says An Order Is Not A Statute Under Tennessee Structured Settlement Protection Act. That opinion followed another appeals court opinion issued earlier this month in a lawsuit between two factoring companies over a lottery payment factoring dispute. The lottery dispute also involved a court order obtained by one factoring company and challenged…

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Another Lottery Winner’s Cautionary Tale

Another Lottery Winner’s Cautionary Tale

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…

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Lottery Transactions Lead To Years-Long Litigation

Lottery Transactions Lead To Years-Long Litigation

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…

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What’s An ‘Advance’?

What’s An ‘Advance’?

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…

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Advances, Assignments, and Gifts

Advances, Assignments, and Gifts

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…

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Commentator Calls Wentworth IPO ‘Glimpse Into The Types Of Financial Structures That Existed Prior To The Collapse Of Lehman Brothers’

Commentator Calls Wentworth IPO ‘Glimpse Into The Types Of Financial Structures That Existed Prior To The Collapse Of Lehman Brothers’

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…

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JGWPT Completes IPO

JGWPT Completes IPO

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 Proceeds, Not For The First Time, Down IPO Path

J.G. Wentworth Proceeds, Not For The First Time, Down IPO Path

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…

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