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Category: Structured Settlements

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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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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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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Virginia Court Ruling Allows Payee’s Challenge to Factoring Transactions to Proceed

Virginia Court Ruling Allows Payee’s Challenge to Factoring Transactions to Proceed

The legal rulings in SAF Funding, LLC v. Taylor, Case No. CL-3022, 2017 Va. Cir. LEXIS 316 (Va. Cir. Ct. Oct. 27, 2017), are many and follow a long and complicated history, but the bottom line is this: the structured settlement payee who is challenging factoring transactions may proceed with his lawsuit. In the ruling, the Virginia Circuit Court for City of Portsmouth addressed a number of ancillary issues, but the key determination was that the payee would be allowed to try…

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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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Appeals Court Affirms Dismissal of Antitrust, False Advertising Claims Brought by One Factoring Company Against Another

Appeals Court Affirms Dismissal of Antitrust, False Advertising Claims Brought by One Factoring Company Against Another

A federal court of appeals affirmed the dismissal of factoring company’s lawsuit against another factoring company over practices that allegedly violated antitrust, false advertising and other unfair trade practices. The Ninth Circuit Court of Appeals last week affirmed the decision by the U.S. District Court for the Central District of California to dismiss the complaint filed by Novation Ventures, LLC, against J.G. Wentworth and affiliated companies, including Peachtree Financial. About Novation’s antitrust claims, the Ninth Circuit said in Novation Ventures…

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Florida Court Sentences Factoring Company Attorney for Forging Judges’ Signatures on ‘Orders’ Involving Transfers of Settlement Payments

Florida Court Sentences Factoring Company Attorney for Forging Judges’ Signatures on ‘Orders’ Involving Transfers of Settlement Payments

One-hundred and eleven and three-hundred and sixty-four. One-hundred and eleven is the number of times that Jose Manuel Camacho Jr. was alleged to have forged the signatures of Broward County, Florida, judges on documents that he passed off as “orders” – orders approving transfers of structured settlement payment rights. Three-hundred and sixty-four is the number of days that Camacho was sentenced to spend in county jail, when he was sentenced in August, after pleading guilty to 14 counts of forgery…

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