The life settlements company Life Partners Holdings, Inc. recently won a ruling involving a lawsuit filed against the company by the Texas state attorney general. However, the ruling is not expected to affect the status of other lawsuits against Life Partners that were filed by individuals who invested with the company.
Texas Attorney General Greg Abbott filed a lawsuit against Life Partners in August 2012 which alleged that the company violated state securities laws by selling life settlements which, according to the suit, were unregistered securities. A Texas District Court judge subsequently ruled that the life settlements sold by Life Partners were not securities under Texas law and thus are not required to be registered. Attorney General Abbott has stated that he will appeal the judge’s decision.
Despite the judge’s ruling in favor of Life Partners, the decision is not expected to affect the status of the lawsuits filed by individual investors against the company and its executives. Hundreds of individuals who purchased life settlements through Life Partners have sued the company, alleging that they were misled about the value of these investments due to fraudulent life expectancy estimates that were provided by the company.
In addition to the numerous lawsuits filed by Heygood, Orr & Pearson on behalf of individual investors from all over the country who purchased Life Partners life settlements, the firm has also filed class action lawsuits against the company on behalf of investors in Texas and California. Individuals who purchased life settlements through Life Partners may be eligible to join one of these class action cases or to file their own lawsuit against Life Partners.