Life Partners Holdings, Inc. (Nasdaq GS: LPHI) announced today that the United States District Court for the District of Nevada has issued summary judgment in favor of the company’s operating subsidiary, Life Partners, Inc. dismissing a variety of claims brought by a group of LPI clients and upholding a judgment issued by a Texas state court involving the same parties and issues.
On October 26, 2012, a Texas state court granted judgment in favor of LPI declaring, among other things:
- that LPI did not breach any contractual duties to Plaintiffs,
- that LPI disclosed that the life expectancy and rate of return were estimates only,
- that LPI adequately informed Plaintiffs of the risks involved in the investment,
- that LPI breached no contractual duties to Plaintiffs related to the life expectancies or rates of return, and
- there is no fiduciary or special relationship between LPI and Plaintiffs.
The Texas court also awarded attorney’s fees against Plaintiffs.
In issuing its order, the Nevada Federal District Court found:
- there was no genuine issue of material fact that the Texas state court entered a prior final judgment on the merits in the action between Plaintiffs and LPI,
- the Federal case is based on the same claims that were or could have been raised in the Texas state court action; and
- The Plaintiffs’ claims in the Federal case are barred under claim preclusion.