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Tag: “J.G. Wentworth”

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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Oregon Appellate Court Enforces Contractual Anti-Assignment Provision to Preclude Structured Settlement Factoring Transaction

Oregon Appellate Court Enforces Contractual Anti-Assignment Provision to Preclude Structured Settlement Factoring Transaction

An Oregon appellate court recently gave effect to a contractual anti-assignment provision to preclude a structured settlement factoring transaction. In Johnson v. J.G. Wentworth Originations, LLC, 284 Ore. App. 47, 2017 Ore. App. LEXIS 280  (Ore. Ct. App. Mar. 1, 2017), the Oregon Court of Appeals reversed a trial court’s decision to approve a transfer of structured settlement payment rights, saying that the insurer with payment obligations had the right to enforce the contractual prohibition against such a transfer. The decision…

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J.G. Wentworth Cites New Opinion to Argue CFPB Lacks Authority

J.G. Wentworth Cites New Opinion to Argue CFPB Lacks Authority

As described in previous Secondary Insurance Market Blog posts (such as those here, here and here), the Consumer Financial Protection Bureau has sought to investigate structured settlement factoring company J.G. Wentworth, which argued that the CFPB lacked authority to conduct such an investigation. In the lawsuit brought by the CFPB to enforce its investigation, J.G. Wentworth recently cited a new opinion as supplemental authority in its arguments. In a filing with the court last week, J.G. Wentworth cited CFPB v. Harbour…

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CFPB’s Investigation Into J.G. Wentworth Exceeds Its Authority, Says U.S. Chamber of Commerce In Amicus Brief

CFPB’s Investigation Into J.G. Wentworth Exceeds Its Authority, Says U.S. Chamber of Commerce In Amicus Brief

The U.S. Chamber of Commerce last week filed an amicus curiae brief in opposition to the Consumer Financial Protection Bureau’s attempt to enforce a civil investigative demand against factoring company J.G. Wentworth. The Chamber of Commerce filed its brief in the pending proceeding in the United States District Court for the Eastern District of Pennsylvania, where the CFPB has sued J.G. Wentworth to enforce the civil investigative demand (“CID”) relating to an array of topics and transactions involving structured settlement…

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Another Commentary Questions CFPB Authority in Regulation of Factoring of Settlement Payment Rights

Another Commentary Questions CFPB Authority in Regulation of Factoring of Settlement Payment Rights

As has been described in previous posts (here and here), some commentators have questioned the authority of the Consumer Financial Protection Bureau over some businesses that it has investigated – businesses that include structured settlement factoring. Consistent with the previous commentaries, two authors have written a piece for the publication Corporate Counsel, entitled “The Long Arm of the CFPB”, once again expressing doubt about the jurisdiction of the CFPB in certain areas.  The piece is available here.

Consumer Financial Protection Bureau Goes to Court to Enforce Investigative Demands Against J.G. Wentworth

Consumer Financial Protection Bureau Goes to Court to Enforce Investigative Demands Against J.G. Wentworth

The Consumer Financial Protection Bureau last week filed a petition in federal court seeking to enforce its civil investigative demands against J.G. Wentworth and its affiliated companies. The CFPB on June 7 filed its petition in the U.S. District Court for the Eastern District of Pennsylvania, alleging that J.G. Wentworth has refused to produce additional documents in response to the CFPB’s civil investigative demand (CID). The CFPB sought documents and information in connection with an investigation of whether J.G. Wentworth…

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CFPB Rejects J.G. Wentworth’s Challenge to Investigative Demand

CFPB Rejects J.G. Wentworth’s Challenge to Investigative Demand

Consumer Financial Protection Bureau Director Richard Cordray this month signed an order rejecting J.G. Wentworth, LLC’s petition for an order to set aside or modify a CFPB civil investigative demand. In the order, Cordray said that the CFPB in September, 2015, has issued a civil investigative demand (CID) to J.G. Wentworth, stating in the DIC that it had been issued “to determine whether persons involved in advancing funds in exchange for the rights to future payments from structured settlements or…

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Novation’s Complaint Failed to State Antitrust Claim Against J.G. Wentworth Companies, Says Federal Court

Novation’s Complaint Failed to State Antitrust Claim Against J.G. Wentworth Companies, Says Federal Court

A federal district court judge this month dismissed an antitrust lawsuit filed by a structured settlement factoring company against a competitor factoring company. In a May 18, 2015, opinion in Novation Ventures, LLC v. The J.G. Wentworth Co., LLC, et al., Case No. 2:15-cv-00954-BRO-PJW (C.D. Calif. May 18, 2015), U.S. District Court Judge Beverly Reid O’Connell granted defendant J.G. Wentworth Company, LLC’s motion to dismiss the lawsuit filed by Novation Ventures, LLC, on the grounds that Novation had failed to state antitrust…

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Court: Former Executives Did Not State A Claim Against J.G. Wentworth

Court: Former Executives Did Not State A Claim Against J.G. Wentworth

A Delaware court last month dismissed claims by former J.G. Wentworth executives seeking $35 million in compensation under a tax receivables agreement. Law360’s story about the decision dismissing the case (“JG Wentworth Dodges Former Execs’ $35 Million Tax Suit”) is here, the Courthouse News Service’s write-up (“Judge Says No to ‘Get Cash Now’ Founders”) is here, the Delaware Business Litigation Report’s piece (“Court of Chancery Explains Contract Interpretation”) is here, and the full opinion is available here.

A Factoring Transaction Might Need Approval From More Than One Court – But The Factoring Company May Need To Provide an Explanation

A Factoring Transaction Might Need Approval From More Than One Court – But The Factoring Company May Need To Provide an Explanation

Under the laws of forty-eight states, structured settlement factoring transactions are generally effective unless and until they receive court approval, by way of a court order issued pursuant to applicable structured settlement protection act (SSPA) requirements. Sometimes, those requirements can mean that the transfer needs approval from more than one court.  A commentary on the subject describes an example this way: For example, if a factoring company proposes to acquire a structured settlement payment rights from a payee who is…

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