This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Alleged Securities Case Against Life Partners Ruled Frivolous By Texas District Court

Stocks in this article: LPHI

Life Partners Holdings, Inc. (Nasdaq GS: LPHI) announced today that a Texas state court has determined that a legal case filed against its subsidiary, Life Partners, Inc., for purported violations of the securities registration provisions and for securities fraud under the Texas Securities Act was frivolous.

The 14 th Judicial District Court of Dallas County, Texas ruled that the case brought by Plaintiffs Michael and Janet Arnold, the South Living Trust, Dr. John S. Ferris and Christine Duncan against Life Partners, Inc. was “frivolous and without basis in fact or in law.” Previous courts have held that the life settlements facilitated by Life Partners are not securities under either the federal securities laws or under the Texas Securities Act. The Court had previously dismissed Plaintiffs’ claims by summary judgment.

Before hearing testimony on the amount of sanctions to be paid to Life Partners, the Court ordered the parties to mediation to see if they can agree on how much the Plaintiffs must pay.

Life Partners CEO Brian Pardo commented, "We are very gratified to see that the courts are recognizing the toll that frivolous lawsuits are having on our economy and are doing something about it. These types of cases are an unnecessary burden on the court system. This ruling sends a clear message to lawyers and their clients that they are going to be held responsible for bringing actions they ought to know are frivolous.”

The case is styled Michael Arnold et al. v. Life Partners, Inc. et al., Cause No. 11-02995, 14 th Judicial District, Dallas County.

Life Partners is the world's oldest and one of the most active companies in the United States engaged in the secondary market for life insurance, commonly called "life settlements". Since its incorporation in 1991, Life Partners has completed over 136,000 transactions for its worldwide client base of over 28,000 high net worth individuals and institutions in connection with the purchase of over 6,000 policies totaling nearly $3 billion in face value.



1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs