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Tag: “structured settlement protection” “structured settlement factoring” “Virginia Structured Settlement Protection” “Virginia SSPA” “fiduciary duty” SSPA “pre-SSPA”

Class-Action Complainant Alleges Scheme By Factoring Companies, With Virginia Judges, To Deprive Structured Settlement Payees of Rights to Counsel, Rights to Future Payments

Class-Action Complainant Alleges Scheme By Factoring Companies, With Virginia Judges, To Deprive Structured Settlement Payees of Rights to Counsel, Rights to Future Payments

A putative class-action plaintiff filed a complaint last week alleging that some Virginia judges were complicit in a scheme, arranged by factoring companies and their lawyer, that was designed to deprive structured settlement payees of their rights – namely, their rights to get legal advice about proposed sales of payment rights to the companies, their rights to having an impartial arbiter decide whether sales of the payees’ payments met statutory standards, and their rights to the payments themselves. The lawsuit…

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Pre-SSPA Case Illustrates One More Twist On The Fiduciary Duty Claim In Structured Settlement Factoring Transactions

Pre-SSPA Case Illustrates One More Twist On The Fiduciary Duty Claim In Structured Settlement Factoring Transactions

As described in this post yesterday, the issue of fiduciary duty has been raised in lawsuits involving structured settlement factoring transactions – including transactions that were made pursuant to structured settlement protection act (SSPA) requirements, and those that were not (as in pre-SSPA transfers). Another opinion, In re Granati, 270 B.R. 575 (Bkrtcy. E.D. Va. 2001), involved a different twist on the the fiduciary duty claim.  There, the factoring company, Stone Street, alleged a breach of fiduciary duty on the part of…

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