No. We will represent you on a contingency fee basis. We only take a percentage (40%) of any recovery we obtain on your behalf. Also, we advance all of the expenses and we only get reimbursed for them out of any recovery for you. If we lose the case (and we are very confident we will not), then our law firm loses the value of all our time and all the money we have spent on expenses. You would owe us nothing. Furthermore, we take no interest in and will take no fee on the death benefits you will be paid when the policies mature. We will only take our 40% fee on any recovery we obtain for you over and above the death benefits you are paid upon maturity. In other words, we will only take a fee on monies recovered for you that you never would have seen had you not hired our firm.
No, with one caveat. You will never have to pay Life Partners anything for any attorney fees they incur in defending the case. However, if we take your case all the way through a trial and the jury rules for Life Partners, then you could be held responsible for your portion of the “taxable court costs” incurred by Life Partners. Taxable court costs include things like filing fees and court reporter fees, but not attorney fees. Since we would be pursuing your case along with the cases of many of investors, each investors’ share of “taxable court costs” is not anticipated to be significant. Furthermore, we are very confident that if we are forced to take the matter all the way through a trial, that we will win.
Very unlikely. Based on what we know now, Life Partners did buy all of the life settlement policies and you will receive your percentage of the death benefits on the policies you invested in. To our knowledge, Life Partners has never failed to pay an investor upon a policy maturity. While the policies will mature much later than you expected, they will eventually mature.
It is not anticipated that Life Partners will file for bankruptcy or “go under.” Because Life Partners is a publicly traded company, they are required to regularly disclose to the public their financial condition. Based on their latest financial disclosures, Life Partners is not in any current financial danger. Furthermore, Life Partners has insurance for the types of claims that we are bringing.
Our attorneys are not financial advisors. As a result, we will not be giving you any advice on this subject. However, we can state that if we had invested with Life Partners that we would make our premium payments. The reason is that, based on information we currently are aware of, the policies are likely to mature before you lose any significant portion of your investment. But if you fail to make premium payments, Life Partners may claim that you have abandoned your life settlement investments, which they claim the documents you signed give them the right to do.
Yes. We allege in the life settlement lawsuits we have already brought on behalf of investors that Life Partners negotiated a price to buy the policies based on legitimate life expectancy information and then convinced you to buy into the policies based on erroneous life expectancy information from a physician known as Dr. Donald Cassidy. This resulted in you overpaying for your policies. As a result, even if you sold one or more of your policies, you were still overcharged according to the allegations we have made in the various lawsuits we have filed. We intend to sue for the amount of this overcharge on behalf of investors even if they have sold their policies. Despite the above, we believe that you should think carefully before selling any of your policies because we anticipate that you would only be able to do so at a substantial loss.
The options are very limited. As mentioned above, our attorneys are not financial advisors but if we had invested through Life Partners, we would make our premium payments. But we do have clients that simply have no way of coming up with the money to make their premium payments. The good news is that so far, we are unaware of Life Partners following through on their threat to claim abandonment. Instead, Life Partners had been making the premium payments for investors and taking the money advanced out of the death benefits upon maturity. The bad news is that Life Partners clearly cannot afford to do this for everyone.
Most lawsuits involving life settlements sold by Life Partners are resolved within 18 months, but it could take a longer or shorter period of time.
Our firm will allege breach of fiduciary duty and fraud against Life Partners based on the erroneous life expectancies and based on the company’s failure to optimize premiums. For more details on the allegations that will be asserted, please see one of the cases filed by Heygood, Orr & Pearson on behalf of several of our clients.
Yes and no. Below is a summary of some of the other litigation against Life Partners and the outcome or status of each.
State of Texas v. Life Partners Holdings, Inc., et al.—In this case, the State of Texas sued Life Partners and two of its executives alleging that Life Partners had engaged in fraud in connection with the sale of unregistered securities. The State of Texas sought in the case an injunction against Life Partners prohibiting them from selling life settlements in Texas. The State of Texas also sought the appointment of a Receiver over Life Partners. A temporary injunction hearing has been held where the judge held that the State of Texas was not entitled to an injunction because, in the opinion of the judge, the life settlement product offered by Life Partners does not constitute a security. The State of Texas is appealing that ruling and the remainder of the State’s case is still pending.
Securities and Exchange Commission v. Life Partners Holdings, Inc., et al.—In this case, the Securities and Exchange Commission sued Life Partners and two of its executives alleging that they have engaged in a disclosure and accounting fraud that misled the Company’s shareholders about the sustainability of Life Partners’ revenues and profits. The lawsuit further alleges that Life Partners has systematically used materially short life expectancies to broker life settlements. This case is still pending and is set for trial later this year.
Turnbow v. Life Partners, Inc.—This is a class action lawsuit against Life Partners alleging that Life Partners breached the fiduciary duties owed to its customers by relying on, utilizing and presenting the erroneous life expectancy assessments of Dr. Donald Cassidy. In a hearing in early 2013, the judge in this case announced she was not inclined to grant class certification. As a result, there will not be a class action over the life expectancies used by Life Partners and each investor will be required to pursue their own case. Heygood, Orr & Pearson has filed numerous cases such as this on behalf of its clients. Class certification in the Turnbow case was denied by the Court in July 2013.
To learn more about filing a Life Partners lawsuit and to find out if you are eligible to file your own case or join one of the existing class action lawsuits against the company, please contact our law firm to speak with an attorney about your legal options. For a free legal consultation, call us toll-free at 1-877-446-9001 or simply complete the free case evaluation form located at the top of this page.