The life settlements company Life Partners Holdings, Inc. (LPHI) has been accused of fraudulently misrepresenting the value of life settlements investments that were sold by the company to investors. Individuals who purchased life settlements from Life Partners may be eligible to join one of the class action lawsuits that has been filed against the company.
Life settlements are essentially life insurance policies sold by the insured individual through a third party such as Life Partners. The interest in these policies is then sold in the form of life settlements to investors. When the insured individual dies, the owner of the life settlement policy receives the death benefit from the original insurance policy.
Class Action Lawsuits Against Life Partners
Heygood, Orr & Pearson has filed class action lawsuits against Life Partners on behalf of individuals who purchased life settlements investments from the company. These lawsuits have accused Life Partners of fraudulently misrepresenting the value of these life settlements by misleading investors about the life expectancy of the insured individuals, making the policies appear more valuable than they actually were.
One such class action case was filed by Heygood, Orr & Pearson on behalf of Helen McDermott and other similarly situated. As mentioned above, investors through Life Partners are required to pay a certain sum to acquire an interest in a given life settlement. However, investors are also required to pay to Life Partners an amount to be deposited into escrow to pay premiums on the policy through the life expectancy of the insured. If the insured passes away early, then the investor is to receive a refund of the escrowed funds.
In the case of Ms. McDermott and other investors, Life Partners refused to refund these escrowed funds when an insured died early. Thus, the class action is on behalf of all investors who wrongfully had their escrowed funds for premiums withheld when an insured died earlier than expected.
Another class action lawsuit filed by Heygood, Orr & Pearson is on behalf of the family of Marilyn Steubens and others similarly situated. This lawsuit alleges that Life Partners charged investors excessive amounts to cover premium payments on their life settlements. Traditionally, companies that sell or broker life settlements only charge investors and forward to the life insurance company the minimum amount necessary to keep the subject policy from lapsing – called the “cost of insurance.” Rather than charging investors this amount, Life Partners has been charging investors including the Steubens and others the full scheduled premium which includes amounts that go to the cash value of the life insurance policies at issue.
Get Legal Help for Your Life Settlements Case
Heygood, Orr & Pearson seeks to recover from Life Partners the amount of these excessive charges for premiums on behalf of the Steubens and all other investors who have been required to pay excessive premiums. If you or a loved one purchased a Life Settlement policy from Life Partners, you may be eligible to seek compensation through a class action lawsuit, or file your own individual case.
For a free consultation from an attorney to determine your eligibility, contact the lawyers at Heygood, Orr & Pearson by calling our toll-free hotline at 1-877-446-9001. You can also reach us by filling out the free case evaluation form located on this website, and one of our representatives will be in touch with you as soon as possible.