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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV